Q4 Earnings Highs And Lows: Covenant Logistics (NYSE:CVLG) Vs The Rest Of The Ground Transportation Stocks

As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the ground transportation industry, including Covenant Logistics (NYSE:CVLG) and its peers.

The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins.

The 15 ground transportation stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 19.4% since the latest earnings results.

Covenant Logistics (NYSE:CVLG)

Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ:CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.

Covenant Logistics reported revenues of $277.3 million, up 1.2% year on year. This print fell short of analysts’ expectations by 2.9%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA estimates.

Chairman and Chief Executive Officer, David R. Parker, commented: “We are pleased to report fourth quarter earnings of $0.24 per diluted share and non-GAAP adjusted earnings of $0.49 per diluted share, on 27.9 million weighted average diluted shares outstanding after giving effect to our recent 2-for-1 stock split. These results mark the end of another successful year despite a challenging general freight environment, and I could not be happier with how our team has planned and adjusted throughout the year.Covenant Logistics Total Revenue

The stock is down 19.2% since reporting and currently trades at $23.40.

Read our full report on Covenant Logistics here, it’s free.

Best Q4: XPO (NYSE:XPO)

Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE:XPO) is a transportation company specializing in expedited shipping services.

XPO reported revenues of $1.92 billion, flat year on year, in line with analysts’ expectations. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

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XPO Total Revenue

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 19.7% since reporting. It currently trades at $109.49.

Is now the time to buy XPO? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Avis Budget Group (NASDAQ:CAR)

The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ:CAR) is a provider of car rental and mobility solutions.

Avis Budget Group reported revenues of $2.71 billion, down 2% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 30.5% since the results and currently trades at $62.32.

Read our full analysis of Avis Budget Group’s results here.

Knight-Swift Transportation (NYSE:KNX)

Covering 1.6 billion loaded miles in 2023 alone, Knight-Swift Transportation (NYSE:KNX) offers less-than-truckload and full truckload delivery services.

Knight-Swift Transportation reported revenues of $1.86 billion, down 3.5% year on year. This number missed analysts’ expectations by 1.2%. Overall, it was a slower quarter as it also produced a significant miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ sales volume estimates.

The stock is down 15% since reporting and currently trades at $46.70.

Read our full, actionable report on Knight-Swift Transportation here, it’s free.

Ryder (NYSE:R)

As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE:R) provides rental vehicles to businesses and delivers packages directly to homes or businesses.

Ryder reported revenues of $3.19 billion, up 5.5% year on year. This print lagged analysts' expectations by 1.5%. It was a slower quarter as it also recorded a significant miss of analysts’ EBITDA estimates and EPS guidance for next quarter missing analysts’ expectations.

The stock is down 8.6% since reporting and currently trades at $144.59.

Read our full, actionable report on Ryder here, it’s free.

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