There were some key points in the second-quarter earnings release of truckload carrier Covenant Logistics (NASDAQ: CVLG).
- The dedicated division operating ratio was improved, the expedited OR was significantly weaker and the end result was a combined truckload OR that dropped 270 basis points compared to the second quarter of 2022.
- In a weak freight market, the combined truckload average freight revenue per total mile declined just 5.3%.
- The adjusted OR for the company was 93.3%, weakening from 89.4%.
- Net income plummeted to $14.4 million from $25.6 million. Adjusted earnings per diluted share were $1.07, a non-GAAP measure, while earnings per diluted share were 91 cents. Seeking Alpha said the consensus forecast on earnings at Covenant this quarter was 95 cents per share.
- The total number of tractors for the period was significantly lower, declining to 2,103 overall from 2,371 a year ago.
The Covenant call with analysts is at 10 a.m. EDT Friday. Its stock has been a high flier, up 43.2% in just the last three months.
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