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Covenant Logistics Q3 results beat estimates on managed freight growth

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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