Covenant Transportation Group Earnings: Everything You Must Know Now

Covenant Transportation Group, Inc. (NASDAQ:CVTI) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Covenant Transportation Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.13 in the quarter versus EPS of $-0.04 in the year-earlier quarter.

Revenue: Rose 4.88% to $164.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Covenant Transportation Group, Inc. reported adjusted EPS loss of $0.13 per share. By that measure, the company beat the mean analyst estimate of $-0.14. It missed the average revenue estimate of $168.36 million.

Quoting Management: Chairman, President, and Chief Executive Officer, David R. Parker, made the following comments: “We experienced an uneven operating environment in the first quarter as January freight was strong, followed by average demand but difficult weather conditions in February, and a March that started off well, but finished weaker than expected. In addition, the first quarter of 2013 basically had two fewer business days than the prior period, due to leap year in 2012 and an early Easter in 2013. Despite the business, weather, and calendar headwinds, operating results were comparable to last year’s first quarter, excluding the $2.4 million gain on sale of a terminal in the 2012 quarter. During the quarter, we continued to improve asset productivity by allocating assets to our refrigerated and team operations, reducing exposure to solo dry van operations, and improving our drivers’ employment experience. These factors contributed to a 7.6% increase in average freight revenue per tractor compared with the first quarter of 2012, which nearly covered our year-over-year operating cost increases. Our asset-based operating ratio was 100.4% compared with 100.1%, excluding the $2.4 million gain on sale of a terminal, in the 2012 quarter.”

Key Stats (on next page)…

Revenue decreased 7.21% from $177.5 million in the previous quarter. EPS decreased to $-0.13 in the quarter versus EPS of $0.10 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.15 to a profit $0.17. For the current year, the average estimate has moved down from a profit of $0.34 to a profit of $0.32 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)