First look: Covenant Logistics’ Q3 freight revenue surges 68%
Covenant Logistics Group reported a 19.2% increase in third-quarter revenue to $353.9 million, fueled by rapid growth in its managed freight segment. The post First look: Covenant Logistics’ Q3 freight revenue surges 68% appeared first on FreightWaves .
Covenant Logistics Group reported a significant surge in its third-quarter freight revenue, increasing by 68.4% year-over-year. The Chattanooga-based carrier generated $353.9 million in total revenue for the quarter ending September 30, up from $296.9 million in the same period last year. Managed freight revenue, the company's primary growth driver, reached $121.6 million, up 68.4% from $72.2 million in the previous year.
This growth was attributed to the integration of acquired brokerage operations, customer rate increases, and lower purchased transportation costs. The company's adjusted earnings per share rose 13.6% to $0.50, marking the first time in over two years that adjusted earnings per share increased both sequentially and year-over-year.
Despite the impressive freight revenue growth, Covenant's adjusted operating ratio worsened to 95% from 94.4%, indicating ongoing challenges in managing operating expenses.
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