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What Awaits Covenant Logistics (CVLG) This Earnings Season?
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Covenant Logistics Group (CVLG - Free Report) is scheduled to report second-quarter 2021 results on Jul 21, after market close.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 120.6%. The Zacks Consensus Estimate for second-quarter earnings per share has increased 4.9% to 64 cents over the past 60 days.
Covenant Logistics Group, Inc. Price and EPS Surprise
Against this backdrop, let’s discuss the factors that might have impacted Covenant Logistics’ performance in the June quarter.
We expect Covenant Logistics’ second-quarter 2021 performance to have been aided by the improved freight market conditions in the United States. The ramp-up in economic activities in the country courtesy of widespread vaccination boosted the freight market. This, in turn, is likely to have contributed to freight revenues in the quarter to-be-reported.
The company’s cost-control efforts are likely to have aided its bottom line in the June quarter. Mainly owing to this cost discipline, the adjusted operating ratio (operating expenses as a % of revenues) is likely to have improved sequentially in the to-be-reported quarter.
Alike the last few quarters, the Dedicated segment is likely to have underperformed in the June quarter. Headwinds like inefficiencies from re-engineering or replacing certain contracts and driver shortage are likely to have weighed on the company’s second-quarter performance.
What Does the Zacks Model Unveil?
The proven Zacks model predicts an earnings beat for Covenant Logistics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive earnings surprise. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Covenant Logistics has an Earnings ESP of +4.69.%. The Most Accurate Estimate is currently pegged at 67 cents, 3 cents higher than 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 Logistics carries a Zacks Rank #3, currently.
Highlights of Q1
Covenant Logistics’ first-quarter earnings per share (excluding 9 cents from non-recurring items) of 56 cents beat the Zacks Consensus Estimate of 32 cents. The bottom line surged 722% year over year.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider Southwest Airlines (LUV - Free Report) , Herc Holdings (HRI - Free Report) and Alaska Air Group (ALK - Free Report) as these stocks too possess the right combination of elements to beat on earnings this reporting cycle.
Southwest Airlines has an Earnings ESP of +11.32% and is Zacks #3 Ranked, presently. The company will release second-quarter 2021 results on Jul 22.
Herc Holdings has an Earnings ESP of +1.85% and a Zacks Rank #2 at present. The company will release second-quarter 2021 results on Jul 22.
Alaska Air has an Earnings ESP of +23.77% and is currently a #3 Ranked player. The company will release second-quarter 2021 results on Jul 22.
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What Awaits Covenant Logistics (CVLG) This Earnings Season?
Covenant Logistics Group (CVLG - Free Report) is scheduled to report second-quarter 2021 results on Jul 21, after market close.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 120.6%. The Zacks Consensus Estimate for second-quarter earnings per share has increased 4.9% to 64 cents over the past 60 days.
Covenant Logistics Group, Inc. Price and EPS Surprise
Covenant Logistics Group, Inc. price-eps-surprise | Covenant Logistics Group, Inc. Quote
Against this backdrop, let’s discuss the factors that might have impacted Covenant Logistics’ performance in the June quarter.
We expect Covenant Logistics’ second-quarter 2021 performance to have been aided by the improved freight market conditions in the United States. The ramp-up in economic activities in the country courtesy of widespread vaccination boosted the freight market. This, in turn, is likely to have contributed to freight revenues in the quarter to-be-reported.
The company’s cost-control efforts are likely to have aided its bottom line in the June quarter. Mainly owing to this cost discipline, the adjusted operating ratio (operating expenses as a % of revenues) is likely to have improved sequentially in the to-be-reported quarter.
Alike the last few quarters, the Dedicated segment is likely to have underperformed in the June quarter. Headwinds like inefficiencies from re-engineering or replacing certain contracts and driver shortage are likely to have weighed on the company’s second-quarter performance.
What Does the Zacks Model Unveil?
The proven Zacks model predicts an earnings beat for Covenant Logistics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive earnings surprise. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Covenant Logistics has an Earnings ESP of +4.69.%. The Most Accurate Estimate is currently pegged at 67 cents, 3 cents higher than 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 Logistics carries a Zacks Rank #3, currently.
Highlights of Q1
Covenant Logistics’ first-quarter earnings per share (excluding 9 cents from non-recurring items) of 56 cents beat the Zacks Consensus Estimate of 32 cents. The bottom line surged 722% year over year.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider Southwest Airlines (LUV - Free Report) , Herc Holdings (HRI - Free Report) and Alaska Air Group (ALK - Free Report) as these stocks too possess the right combination of elements to beat on earnings this reporting cycle.
Southwest Airlines has an Earnings ESP of +11.32% and is Zacks #3 Ranked, presently. The company will release second-quarter 2021 results on Jul 22.
Herc Holdings has an Earnings ESP of +1.85% and a Zacks Rank #2 at present. The company will release second-quarter 2021 results on Jul 22.
Alaska Air has an Earnings ESP of +23.77% and is currently a #3 Ranked player. The company will release second-quarter 2021 results on Jul 22.