CVLG Earnings Prediction
The chart below shows how CVLG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CVLG sees a -3.13% change in stock price 10 days leading up to the earnings, and a +4.10% change 10 days following the report. On the earnings day itself, the stock moves by +0.30%. This data can give you a slight idea of what to expect for the next quarter's release.
CVLG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
277.33M
1.22%
-3.67%
Gross Margin
60.40%
7.24%
0.12%
Operating Margin
3.06%
-40.35%
-46.41%
Net Margin
2.37%
-48.70%
-47.10%
EPS
0.24
-73.63%
-48.94%
No Data Available
CVLG Earnings Analysis
Covenant Logistics Group Inc Corporation (CVLG.O) Earnings Conference Call
Positive
Freight Revenue Increase: Consolidated freight revenue grew by 4.6% due to new multi-year customer agreements in the dedicated segment.
Operating Income Improvement: Consolidated adjusted operating income increased by 4.7%, driven by margin improvements in the Asset Light segments, including Managed Freight and Warehousing.
Freight Profitability Surge: Managed Freight exceeded profitability expectations by capitalizing on overflow freight from asset-based segments, indicating strong operational performance.
Warehousing Profitability Improvement: Warehousing improved its adjusted operating profit by 56% year-over-year, achieving an adjusted operating ratio of 90.7%, reflecting enhanced profitability in this segment.
Dedicated Fleet Expansion: The average fleet size in the Dedicated segment grew by 198 units or approximately 16.2%, contributing to a freight revenue increase of $14.8 million or 22.4% compared to the previous year.
Negative
Segment Profitability Decline: Dedicated segment profitability fell short of expectations due to prolonged customer shutdowns and volume reductions, resulting in year-over-year and sequential margin erosion.
Tractor Age Increase: The average age of tractors increased to 20 months from 19 months a year ago, indicating potential inefficiencies in fleet management.
Decline in Return on Invested Capital: Return on average invested capital declined to 8.1% from 8.9% in the prior year, primarily due to an increase in the average invested capital base associated with acquisitions and growth CapEx.
Decline in Pre-tax Income: Pre-tax net income from the minority investment in Till decreased by approximately 36% compared to the prior year period, largely due to higher operating costs and bad debt expenses.
Cost Challenges Impacting Profitability: Costs were headwinds for the quarter, with higher than normal driver wages, claims expenses, and operations and maintenance expenses impacting overall profitability.
CVLG FAQs
How does CVLG typically perform around its earnings report dates?
Is Earnings call transcript: Covenant Logistics Q4 2024 shows slight earnings miss positive or negative?
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CVLG Earning Call Sentiment
Earnings call transcript: Covenant Logistics Q4 2024 shows slight earnings miss
CVLG.O
-3.95%Positive
The earnings call presents a mixed outlook. While there are positive aspects like strong revenue growth and share repurchase history, challenges such as cost pressures, weather impacts, and competition in the dedicated market pose risks. The Q&A section highlights some optimism in bid wins and rate momentum but also reveals uncertainties in cost inflation and competition. Overall, the sentiment is balanced, with both positive and negative factors, suggesting a neutral impact on the stock price in the short term.
