Covenant Transportation Expects Higher 4Q Earnings
Covenant Transportation Group Inc. said it expects fourth-quarter 2014 net income of 70 cents to 78 cents a share, compared with 40 cents a share in the previous year’s quarter.
The improved earnings forecast is attributed to higher demand and higher freight revenue per truck, Covenant said in a Dec. 10 statement.
“Demand has trended solidly above demand in the fourth quarter of 2013. For the two months ended Nov. 30, 2014, total revenue increased 11.1%, average freight revenue per total mile increased 10.9%, average miles per tractor per week increased 6.8% and average freight revenue per tractor per week increased 18.4%, in each case compared with the two months ended Nov. 30, 2013,” CEO David Parker said in the statement.
Parker said the benefit from lower fuel prices would “have a limited impact on the company,” because 27% of its fuel usage for the fourth quarter is hedged at prices higher than the average prices paid by the carrier.
