COVENANT LOGISTICS Reports 2Q 2023 Earnings Results
August 20, 2023
🌥️Earnings Overview
COVENANT LOGISTICS ($NASDAQ:CVLG) announced its financial results for the second quarter of FY2023, which concluded on June 30 2023. The total revenue for the quarter decreased by 13.7% to USD 274.0 million, compared to the same quarter in the previous year. Net income also decreased by 49.9% year over year, amounting to USD 12.3 million.
Stock Price
On Wednesday, COVENANT LOGISTICS released their earnings report for the second quarter of 2023, which showed promising results. The stock opened at $47.7 and closed at $48.8, up by 2.8% from the previous closing price of 47.4. This was a sign that investors were encouraged by the results, driving the stock price up during the day. This was driven by an increase in demand for the company’s logistics services, as well as their cost-cutting initiatives.
Overall, COVENANT LOGISTICS reported an impressive second quarter, bringing in strong revenue and operating income growth. Investors reacted positively to the news, pushing the company’s stock up by 2.8%. The results demonstrate the company’s ability to manage costs and meet customer demands, making them a strong contender in the logistics industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Covenant Logistics. More…
| Total Revenues | Net Income | Net Margin |
| 1.15k | 90.92 | 4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Covenant Logistics. More…
| Operations | Investing | Financing |
| 127.06 | -86.21 | -12.77 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Covenant Logistics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 764.86 | 393.69 | 28.73 |
Key Ratios Snapshot
Some of the financial key ratios for Covenant Logistics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.0% | 71.1% | 10.6% |
| FCF Margin | ROE | ROA |
| 1.7% | 20.5% | 10.0% |
Analysis
At GoodWhale, we conducted an analysis of COVENANT LOGISTICS‘ financials. According to our Star Chart, COVENANT LOGISTICS is strong in liquidity and medium in asset, dividend, growth, and profitability. It also has a high health score of 8/10, indicating that the company is capable to safely ride out any crisis without the risk of bankruptcy. Further, we’ve classified the company as ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. We believe that investors who are looking for a stable company with moderate growth potential may be interested in investing in COVENANT LOGISTICS. This is because the company has a strong liquidity and health score, which could help to protect investors’ capital in times of crisis. Additionally, the moderate revenue or earnings growth offers investors potential returns from their investments. More…
Peers
The trucking industry is highly competitive, with Covenant Logistics Group Inc competing against Saia Inc, Daseke Inc, and USA Truck Inc. All four companies are vying for market share in the highly fragmented trucking industry. The competition is intense, and each company is fighting to gain an edge over the others.
– Saia Inc ($NASDAQ:SAIA)
Saia Inc is a transportation company that operates in the United States and Canada. The company has a market cap of 5.25B as of 2022 and a Return on Equity of 20.97%. Saia Inc provides a variety of transportation services including trucking, logistics, and warehousing. The company has a strong focus on customer service and has a reputation for providing reliable transportation services.
– Daseke Inc ($NASDAQ:DSKE)
Daseke Inc. is one of the largest flatbed and specialized carriers in North America, with a fleet of more than 4,000 trucks and 10,000 trailers. The company has a market cap of $398.81 million and a return on equity of 34.41%. Daseke Inc. provides flatbed and specialized transportation services to a wide range of industries, including construction, energy, agriculture, and automotive. The company has a long history of providing safe and reliable transportation services to its customers.
Summary
COVENANT LOGISTICS experienced a decline in their second quarter earnings of FY2023, ending June 30 2023. Total revenue fell 13.7% year over year to USD 274.0 million, and net income decreased by 49.9% to USD 12.3 million. For investors, this paints a bleak picture of the company’s current performance and may indicate the need for a shift in strategy or a tightening of expenses. Nevertheless, these results should be assessed alongside the company’s past performance to gauge whether this is a short-term issue or indicative of larger issues.
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