MENU
SEARCHCovenant Transportation Group Inc. has lowered expectations for its second quarter earnings report due to the current freight market as well as internal issues it’s facing.
Covenant Transportation Group Inc. (NASDAQ:CVTI) has lowered expectations for its upcoming second quarter earnings report due to the current freight market as well as internal issues faced by the trucking company.
The Tennessee-based owner of Covenant Transport and others is forecasting earnings of 17 cents to 23 cents per share, down from its late April expectation of 28 cents to 33 cents per share.
In a statement, Chairman and CEO David R. Parker said, “The main factors contributing to our updated expectations are difficult freight market conditions that have negatively impacted our expected consolidated average freight revenue per loaded mile, average miles per tractor, and empty miles percentage; and higher net fuel cost per mile due to lower fuel surcharge recovery from customers, the lag effect of surcharge adjustments as fuel prices rise, and higher empty mile percentage.”
He also blamed higher depreciation expenses due to the soft used truck market and “increased other costs on a per-mile basis related to worse fixed cost absorption. In addition, we expect to operate approximately 2% fewer average tractors during the quarter than we previously had expected.”
A disproportionate portion of the shortfall against the company’s expectations is expected to come from its refrigerated subsidiary, Southern Refrigerated Transport (SRT).
“We continue to view turning around SRT's performance as our most important objective,” Parker said. "We continue to adjust resources to support SRT's efforts. While we have been pleased with management's energy and receptivity at SRT, we do not view the situation as a near-term turnaround."
This news follows fellow trucking company Werner Enterprises on Monday saying it reduced expected earnings per share for the second quarter of the year to between 21 and 25 cents. This compares to actual earnings of 44 cents per share in the second quarter of 2015 and 28 cents per share in the first quarter of this year.
Both come in the wake of reports that both truckload linehaul and intermodal rates fell again in May despite an increase in truck tonnage following two months of declines. Meantime, a separate report showed while freight shipments increased in May, the level was below that of the past several years.
How a former commercial vehicle enforcement officer turned director of safety at K&B Transportation is embracing real-world safety technology.
Read More →
When the unexpected happens, how you react to, and deal with operational blind spots is critical. Here’s how to keep you recovery on track, when nothing is normal.
Read More →
As fleets adopt artificial intelligence for routing, maintenance, and load matching, new security risks are emerging. Learn where the vulnerabilities are and how to put the right controls in place.
Read More →
The long-awaited registration system promises a single portal — and tighter fraud controls.
Read More →
CargoNet reports fewer supply chain crime events to start 2026. But losses hold steady as organized crime shifts tactics toward impersonation schemes and high-value goods.
Read More →
Heavy Duty Trucking is searching for forward-looking leaders at trucking fleets as nominations for HDT’s Truck Fleet Innovators 2026. Deadline is May 15.
Read More →
Cargo theft rings plant operatives as drivers inside legitimate, fully vetted carriers, then execute coordinated thefts that look like a traditional straight theft from the outside.
Read More →
A modest sequential increase capped the strongest quarterly performance in years, signaling continued freight momentum in early 2026.
Read More →
More than 300 carriers across 26 states have been sent to collections as the Ohio Turnpike cracks down on toll evasion and delinquent payments.
Read More →
The American Transportation Research Institute will examine driver coaching, regulatory impacts — including the "Beyond Compliance" concept —and weather disruptions that shape trucking operations.
Read More →
