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The Zacks Consensus Estimate for CVLG’s second-quarter 2023 earnings declined 10.5% to 85 cents per share over the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average beat being 10.6%.
Against this backdrop, let’s take a look at the factors likely to have shaped the company’s June-quarter performance.
Given supply-chain woes and inflationary pressure, freight demand has slowed down. Therefore, we expect this trucking company’s performance in the to-be-reported quarter to have been dented by lower freight revenues. Due to lower freight revenues, total revenues for CVLG’s truckload operations are likely to have been hit in the quarter under review.
Also, rising fuel cost is likely to affect bottom-line results. The consensus estimate for quarterly earnings indicates a 47.9% decline year over year.
Covenant Logistics Group, Inc. Price and EPS Surprise
The proven Zacks model does not conclusively predict an earnings beat for Covenant this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Covenant has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Covenant currently carries a Zacks Rank #3.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their second-quarter 2023 earnings.
American Airlines (AAL - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average. The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings suggests a surge of more than 100% from the year-ago reported figure.
JetBlue Airways (JBLU - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #2. JBLU will release results on Aug 1.
JBLU has an expected earnings growth rate of 192.5% for the current year. The company has surpassed the Zacks Consensus Estimate in two of the past four quarters, missing twice.
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What's in the Cards for Covenant (CVLG) in Q2 Earnings?
Covenant Logistics Group, Inc. (CVLG - Free Report) is scheduled to report second-quarter 2023 results on Jul 26 after market close.
The Zacks Consensus Estimate for CVLG’s second-quarter 2023 earnings declined 10.5% to 85 cents per share over the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average beat being 10.6%.
Against this backdrop, let’s take a look at the factors likely to have shaped the company’s June-quarter performance.
Given supply-chain woes and inflationary pressure, freight demand has slowed down. Therefore, we expect this trucking company’s performance in the to-be-reported quarter to have been dented by lower freight revenues. Due to lower freight revenues, total revenues for CVLG’s truckload operations are likely to have been hit in the quarter under review.
Also, rising fuel cost is likely to affect bottom-line results. The consensus estimate for quarterly earnings indicates a 47.9% decline year over year.
Covenant Logistics Group, Inc. Price and EPS Surprise
Covenant Logistics Group, Inc. price-eps-surprise | Covenant Logistics Group, Inc. Quote
What Does the Zacks Model Say?
The proven Zacks model does not conclusively predict an earnings beat for Covenant this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Covenant has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Covenant currently carries a Zacks Rank #3.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their second-quarter 2023 earnings.
American Airlines (AAL - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average. The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings suggests a surge of more than 100% from the year-ago reported figure.
JetBlue Airways (JBLU - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #2. JBLU will release results on Aug 1.
JBLU has an expected earnings growth rate of 192.5% for the current year. The company has surpassed the Zacks Consensus Estimate in two of the past four quarters, missing twice.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.