Freight and logistics provider Covenant Logistics (NASDAQ: CVLG) will be reporting earnings this Thursday after market close. Here’s what to look for.
Covenant Logistics missed analysts’ revenue expectations last quarter, reporting revenues of $295.4 million, up 6.5% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Is Covenant Logistics a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Covenant Logistics’s revenue to grow 6.8% year on year, a reversal from the 3.4% decrease it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Covenant Logistics’s peers in the transportation and logistics segment, only FedEx has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 8.3%. The stock price was unchanged following the results.
Read our full analysis of FedEx’s earnings results here.There has been positive sentiment among investors in the transportation and logistics segment, with share prices up 11.2% on average over the last month. Covenant Logistics is up 18.9% during the same time and is heading into earnings with an average analyst price target of $31.67 (compared to the current share price of $31.23).
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