Covenant Logistics Group reported $258.6 million in freight revenue during the third quarter, with truckload operations increasing 2.8% to $198 million.
Chattanooga, Tennessee-based Covenant (NASDAQ: CVLG) reported adjusted earnings per share of $1.09 in the quarter, beating analysts’ estimates of $1.08 per share.
The company posted total revenue of $287.8 million in the quarter, a 0.3% year-over-year
decline compared to 2023, and missed Wall Street estimates of $302 million.
“Highlights of our third quarter results include year over year freight revenue growth of 2.1%, operating income growth of 7.2%, and non-GAAP adjusted operating income growth of 8.3%,” Chairman and CEO David R. Parker said in a news release. “Our core business continues to perform well despite the prolonged general freight market down cycle.”
Freight revenue per tractor per week fell about 1% to $5,637. The expedited truckload segment revenue decreased 8% to $104.3 million, while dedicated segment revenue rose 18% to $94.7 million.
Covenant’s managed freight segment saw revenue of $63.3 million in the third quarter, a decrease of 9% from the same time last year. The warehousing segment had revenue of $25.1 million during the quarter, a 1% year-over-year increase.
Covenant will hold a conference call to discuss results with analysts at 10 a.m. Thursday.
| Covenant Logistics Group | Q3/24 | Q2/24 | Y/Y % Change |
| Total revenue | $287.8 | 288.7 | (0.3%) |
| Truckload combined: | |||
| Revenue | $199 | $193.6 | 2.8% |
| Freight revenue (ex fuel) | $170 | $158.6 | 7.2% |
| Revenue per total mile | $2.41 | $2.33 | 3.4% |
| Revenue/tractor/week | $2,295 | $2,126 | 7.9% |
| Adjusted OR% | 91.5% | 91.9% | (0.4%) |
| Managed freight: | |||
| Revenue | $63.3 | $69.7 | (9%) |
| Adjusted operating income | $2,716 | $3,854 | (29%) |
| Adjusted OR% | 95.7% | 94.5% | (1%) |
| Expedited freight: | |||
| Revenue (ex fuel) | $87.3 | $91.7 | (4.7%) |
| Adjusted operating income | $7,000 | $8,549 | (18%) |
| Adjusted OR% | 92% | 90.7% | 1.2% |
| Dedicated freight: | |||
| Revenue (ex fuel) | $82.6 | $66.9 | 23% |
| Adjusted operating income | $7,464 | $4,291 | 74% |
| Adjusted OR% | 91% | 93.6% | (2.7%) |
| Adjusted earnings per share | $1.09 | $1.13 | (3.5%) |
