Covenant Logistics (CVLG) got here out with quarterly earnings of $0.56 per share, beating the Zack
Covenant Logistics (CVLG) got here out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to lack of $0.08 per share a yr in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 5.66%. 1 / 4 in the past, it was anticipated that this truckload transportation companies supplier would publish a lack of $0.01 per share when it truly produced earnings of $0.03, delivering a shock of 400%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates 4 occasions.
Covenant Logistics, which belongs to the Zacks Transportation – Truck trade, posted revenues of $210.83 million for the quarter ended September 2020, surpassing the Zacks Consensus Estimate by 3.70%. This compares to year-ago revenues of $222.91 million. The corporate has topped consensus income estimates 4 occasions over the past 4 quarters.
The sustainability of the inventory’s rapid value motion based mostly on the recently-released numbers and future earnings expectations will largely depend upon administration’s commentary on the earnings name.
Covenant Logistics shares have added about 34.4% for the reason that starting of the yr versus the S&P 500’s achieve of seven.3%.
What’s Subsequent for Covenant Logistics?
Whereas Covenant Logistics has outperformed the market thus far this yr, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist buyers deal with that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified recently.
Empirical analysis exhibits a powerful correlation between near-term inventory actions and traits in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a powerful monitor file of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for Covenant Logistics was favorable. Whereas the magnitude and route of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #1 (Robust Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You may see the entire record of in the present day’s Zacks #1 Rank (Robust Purchase) shares right here.
It will likely be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.65 on $217.90 million in revenues for the approaching quarter and $1.02 on $826.50 million in revenues for the present fiscal yr.
Buyers must be conscious of the truth that the outlook for the trade can have a fabric affect on the efficiency of the inventory as effectively. By way of the Zacks Business Rank, Transportation – Truck is at present within the prime 2% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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Covenant Transportation Group, Inc. (CVLG): Free Inventory Evaluation Report
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