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What's in the Cards for Covenant (CVLG) in Q4 Earnings?

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Covenant Logistics Group, Inc. (CVLG - Free Report)  is scheduled to report fourth-quarter 2022 results on Jan 25, after market close.

The Zacks Consensus Estimate for CVLG’s fourth-quarter 2022 earnings remained flat at $1.51 per share over the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 22.67%.

Against this backdrop, let’s take a look at the factors that might have shaped the company’s December-quarter performance.

Given supply-chain woes and the inflationary pressure, freight demand has slowed down. Therefore, we expect the trucking company’s performance in the to-be-reported quarter to have been dented by lower freight revenues. The Zacks Consensus Estimate for freight revenues indicates a 4.1% decline from third-quarter 2022 actuals.

Due to lower freight revenues, total revenues for CVLG’s truckload operations are likely to have been hit. The Zacks Consensus Estimate for truckload revenues (combined truckload) indicates a 23.2% decline from third-quarter 2022 actuals.

However, fuel surcharge revenues are likely to have been high due to increased fuel price. The Zacks Consensus Estimate for fuel surcharge revenues indicates a 45% increase from fourth-quarter 2021 actuals.

What Does the Zacks Model Say?

The proven Zacks model does not conclusively predict 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 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 Logistics 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 Logistics carries a Zacks Rank #3, currently.

Stocks to Consider

Investors interested in the broader Transportation  sector may consider JetBlue Airways (JBLU - Free Report) and Norfolk Southern Corporation (NSC - Free Report) as these stocks possess the right combination of elements to beat on earnings in this reporting cycle.

JetBlue has an Earnings ESP of +20.59% and a Zacks Rank #3. JBLU will release results on Jan 26.

We expect upbeat air-travel demand to have aided JBLU’s fourth-quarter performance. However, high costs may act as dampener.

Norfolk Southern has an Earnings ESP of +0.55% and a Zacks Rank #3. NSC will release results on Jan 25.

We expect the upbeat demand scenario to have aided NSC’s fourth-quarter performance. However, high fuel costs may act as dampener.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Covenant Logistics Group, Inc. (CVLG) - free report >>

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