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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