Covenant Logistics shares fell 11.2% to $36.85 on Thursday after the company reported adjusted earnings per share of 42 cents, down from 45 cents a year earlier, despite a 6.16% increase in freight revenue. CFO James Grant emphasized that the company’s structural shift toward multiyear committed contracts and specialized services like dedicated and warehousing is designed for long-term resilience rather than capturing short-term freight rate surges. The Expedited division was a key laggard, with freight revenue excluding fuel down about 12.9% and an adjusted operating ratio of 94.6%, while insurance and claims costs rose to $18.1 million in the second quarter, the highest quarterly level historically. Grant outlined three execution priorities: transitioning expiring contracts into new long-term commitments, moving uncommitted capacity into committed revenue, and normalizing the Managed Freight segment as contract rates catch up to capacity costs. The stock has fallen about 16.6% for the month but remains up 51.2% over the past 52 weeks.
Covenant Logistics Group, Inc.Adjusted EPS fell to 42 cents from 45 cents, missing expectations and driving an 11.2% stock decline.