Covenant Transportation Group, Inc. (NASDAQGS:CVTI) is scheduled to report Q4 earnings results on Thursday, January 23, 2020. Management will hold an earnings conference call on Friday, January 24, at 11:00 a.m. ET.
The company is expected to report earnings of $0.27/share on revenue of $235.2 million. The consensus earnings per share (EPS) of $0.27/share is based on a poll of 2 analysts and represents a decline of -71.2% over the same quarter last year when the company reported earnings of $0.92/share.
The revenue forecast of $235.2 million based on a poll of 2 analysts implies a year-over-year (YoY) decline of -13.6%. Last year the company reported $272.3 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters and met expectations 1 quarter.
What are your expectations from Covenant Transportation for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending September 30, 2019, the stock price did not react much to the update.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
Fundamentals And Technical Analysis
Covenant Transportation is currently trading at $13.64/share, down -2.7% for the day. The company is trading at approximately 54.6% of its 52-week high of $24.99/share. The company’s stock price is down -16.1% since the last earnings report and down -0.1% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 62.86 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 10.9x and a forward P/E multiple of 19.0x. Covenant’s current share price also implies a price-to-book (P/B) multiple of 0.7x. The following table summarizes some other key fundamental ratios:
|Last Fiscal Period||FY2019.Q3|
|Period End Date||September 30, 2019|
|Stock Price (Current)||$13.64|
|P/E Ratio (Fwd)||19.0x|
|Total Debt to Capital (%)||58.7%|
|Levered Free Cash Flow||-$97.028 million|
|Enterprise Value / EBITDA||5.0x|
Company Profile: Covenant Transportation Group, Inc.
Covenant Transportation Group, Inc. is a micro-cap stock with a market capitalization of $258.8 million and a total enterprise value of $587.6 million. The company operates in the Industrials sector and the Road & Rail industry.
Covenant provides truckload transportation and brokerage services primarily in the continental United States. It offers expedited and dedicated services. The company also provides ancillary services, including freight brokerage and logistics services, warehousing, and accounts receivable factoring; and over-the-road truckload services, as well as transportation management, shuttle, and switching services. It serves transportation companies, such as freight forwarders, less-than-truckload carriers, and third-party logistics providers; and traditional truckload customers, including manufacturers, retailers, and food and beverage shippers.
As of December 31, 2018, the company operated 3,154 tractors and 6,950 trailers.
Covenant Transportation Group, Inc. was founded in 1986 and is headquartered in Chattanooga, Tennessee.