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Sep 30, 2024
Covenant Logistics Q3 2024 Earnings Report
Covenant Logistics Group reported third quarter earnings with freight revenue increase and operating income growth.
Key Takeaways
Covenant Logistics Group reported third quarter earnings of $0.94 per diluted share and non-GAAP adjusted earnings of $1.09 per diluted share. Freight revenue grew by 2.1% year-over-year, and operating income increased by 7.2%. The company also reduced its net indebtedness by $36.6 million sequentially and improved the average age of its fleet.
Earnings per diluted share were $0.94, and non-GAAP adjusted earnings per diluted share were $1.09.
Freight revenue increased by 2.1% year-over-year.
Operating income grew by 7.2% year-over-year.
Net indebtedness decreased by $36.6 million sequentially.
Covenant Logistics
Covenant Logistics
Covenant Logistics Revenue by Segment
Revenue by Segment
Expedited - Truckload Revenue
CapyFin.comDedicated - Truckload Revenue
CapyFin.comManaged Freight Revenue
CapyFin.comWarehousing Revenue
CapyFin.com Forward Guidance
The company believes that the overall general freight market will take time to meaningfully improve due to lingering excess carrier capacity and the lack of an immediate catalyst to improve volumes. They are seeing some green shoots in the form of new dedicated business awards and a small number of customer rate increases, but these wins have been somewhat offset with softer than anticipated volumes, particularly in the Expedited segment.
Positive Outlook
- New dedicated business awards
- Customer rate increases
- Focus on strategic plan execution
- Capitalizing on opportunities to drive deeper into the supply chain
- Adding value for customers
Challenges Ahead
- Lingering excess carrier capacity
- Lack of an immediate catalyst to improve volumes
- Softer than anticipated volumes, particularly in Expedited segment
- Overall general freight market will take time to meaningfully improve
- Multi-year contractual agreements will likely take time to execute
Revenue & Expenses
Visualization of income flow from segment revenue to net income