CVLG - Covenant's Operating Numbers Mostly Hold Up in Challenging First Quarter | Benzinga
Covenant's adjusted earnings per share on a non-GAAP basis came in at 84 cents per share, down from 93 cents per share a year ago. According to SeekingAlpha, that figure beat the consensus forecast by 4 cents per share. But adjusted operating income, the most basic profitability measure, rose to $14.8 million from $12.62 million a year ago.
That can be seen in the fact that Covenant's operating ratio as a whole on a non-GAAP basis improved to 94% from 94.6% in the first quarter of 2023. That OR takes into consideration not only the company's trucking activities but its managed freight operations, which houses its brokerage division, and its Warehouse segment.
Net income was impacted by about $8.1 million in expenses related to last year's acquisition of poultry hauler Lew Thompson & Son. The end result of that was net income of 29 cents per share, down from $1.20 per share on a GAAP basis.
On the trucking side, the adjusted OR for its combined truckload operations deteriorated to 93.7% from 92.5%, a relatively small decline. The adjusted OR in the expedited division, which operates team drivers, was 93.9%, weakening from 91% in 2023's first quarter. But the adjusted OR in dedicated improved to 93.5% from 94.4%.
The adjusted OR ...