Covenant Logistics Q3 results beat estimates on managed freight growth
Overview
US trucking and logistics firm's Q3 revenue rose 19% yr/yr, beating analyst expectations
Adjusted EPS for Q3 was up yr/yr and beat analyst expectations
Managed Freight growth offset Truckload disruption and added costs
Outlook
Company expects modest sequential EPS increase in Q4 2026
Company expects Dedicated fleet growth and stable Expedited fleet in Q4 2026
Company expects gradual margin expansion from cost reductions
Result Drivers
LONG-TERM CONTRACTS - Co said higher proportion of fleet under long-term contracts drove results
MANAGED FREIGHT GROWTH - Co attributed Managed Freight segment growth to integration of acquired assets
RATE INCREASES AND LOWER COSTS - Co said margin improvement was driven by customer rate increases and easing spot transportation costs
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $353.89 mln | $337.50 mln (4 Analysts) |
Q3 Adjusted EPS | Beat | $0.50 | $0.44 (5 Analysts) |
Q3 EPS | $0.40 | ||
Q3 Adjusted Net Income | $13.20 mln | ||
Q3 Net Income | $10.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the ground freight & logistics peer group is "buy"
Wall Street's median 12-month price target for Covenant Logistics Group Inc is $50.00, about 72.6% above its October 28 closing price of $28.97
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 23 three months ago
Reuters Recommended Reads
Oct 29 - US shipper costs hit five-year high, even as demand stalls, US Bank data shows
Oct 28 - CH Robinson Q3 revenue beats on higher truckload pricing
Oct 29 - Transportation broker RXO Q3 profit beats on growth in truckload volume
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)