Covenant Expects Higher 4Q Earnings
Covenant Transportation Group Inc. said it expects fourth-quarter 2013 net income of 18 cents to 22 cents a share, compared with 10 cents a share in the previous year’s quarter.
Covenant attributed the improved earnings forecast to higher freight revenue per truck, improvements in revenue and margins in its logistics business and lower fuel costs, it said in a Jan. 14 statement.
“The first two months of the quarter were solid but not unusual,” CEO David Parker said in the statement. “During December, we experienced a significant increase in demand, particularly in our expedited team-driver operations, which supported higher than expected freight revenue per mile (excluding fuel surcharge revenue) and miles per tractor.”
Parker said the carrier’s business benefitted from the compressed time between Thanksgiving and Christmas and the increase in online shopping.
Covenant will release its full fourth-quarter earnings report Jan. 27, it said.
