Covenant Logistics (CVLG) Reports Q3: Everything You Need To Know Ahead Of Earnings

Freight and logistics provider Covenant Logistics (NASDAQ:CVLG) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.

Covenant Logistics missed analysts’ revenue expectations by 4% last quarter, reporting revenues of $287.5 million, up 4.9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ Freight revenue revenue estimates.

Is Covenant Logistics a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Covenant Logistics’s revenue to grow 2.6% year on year to $296.2 million, a reversal from the 7.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.06 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Covenant Logistics has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Covenant Logistics’s peers in the transportation and logistics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. CSX delivered year-on-year revenue growth of 1.3%, missing analysts’ expectations by 1.5%, and FedEx reported flat revenue, falling short of estimates by 1.5%. CSX traded down 6.7% following the results while FedEx was also down 15.3%.

Read our full analysis of CSX’s results here and FedEx’s results here.

There has been positive sentiment among investors in the transportation and logistics segment, with share prices up 2.3% on average over the last month. Covenant Logistics is down 1.9% during the same time and is heading into earnings with an average analyst price target of $70.33 (compared to the current share price of $51.99).

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