Covenant Logistics (NASDAQ: CVLG) has been a rare standout stock in a difficult market, with shares up more than 60% in the 12 months leading up to the company's late-Wednesday earnings release. But those earnings weren't quite what investors had hoped for, and shares of Covenant have fallen as much as 19% on Thursday as a result.
Covenant has been a standout transportation stock , getting on the radar of a lot of investors in 2022 thanks to strong results and a commitment to returning the cash it is generating to shareholders. The company has repurchased nearly 20% of its shares outstanding since 2019.
But the recently completed fourth quarter didn't quite live up to Wall Street expectations. Covenant reported earnings of $0.81 per share according to generally accepted accounting principles ( GAAP ) and non-GAAP earnings of $1.37 per share, short of the consensus $1.41-per-share estimate. Covenant said that the difference relates to an early lease abandonment and disposal charge and excess equipment expense.
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Why Covenant Logistics Stock Is Down Today