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Covenant Logistics Prepares for Earnings Report Amid Modest Growth Expectations

Transportation and Logistics

Business Honor - Covenant Earnings Outlook Stable

Business Honor
23 July, 2025

Covenant Logistics faces investor skepticism ahead of earnings, with modest growth and potential upside.

Covenant Logistics one of the leading freight and logistics companies, is scheduled to release its quarterly earnings after the market close. Having had a relatively disappointing quarter previously, where Covenant fell short of analysts' revenue forecasts by 4.5%, investors are eager to know whether Covenant will reverse fortunes. Last quarter, Covenant recorded revenues of $269.4 million, a 3.4% drop from the same period last year. Higher figures were what analysts were expecting as the company fell short of its freight revenue and adjusted operating income targets by a wide margin. This performance was raised concerns about whether the business could deliver.

A modest pickup is forecast for this quarter from analysts. Covenant's revenues will be 1.6% higher year over year, hitting $292.1 million, though that expansion rate is weaker than the 4.9% increase the company achieved in the same quarter last year. Adjusted earnings are also expected to hit $0.42 a share. The broad consensus among analysts in the last month is Covenant will stay on track, since most of their projections have been reaffirmed. But with five misses in revenue in the last two years, investors remain skeptical that the company will achieve forecasts.

Observing peers within the logistics space, FedEx recently reported, ahead of estimates by 1.9% for revenue. Regardless of that encouraging outcome, FedEx's stock fell 3.2%, mirroring overall investor skepticism within the transportation space. The overall transportation and logistics segment has experienced upbeat sentiment, with stocks up 5.9% on average over the last month. Going into earnings, Covenant's stock price has held steady, with an average price target from analysts of $32.67 versus its current share price of $23.60, indicating that there could be upside for investors if the company beats or meets expectations.