Home  »  Trendy Stocks   »  Covenant Logistics Group Inc. (CVLG) Stock Plummet...

Covenant Logistics Group Inc. (CVLG) Stock Plummets Despite Disclosure of Stellar Q3 2021 Financial Report

Covenant Logistics Group Inc. (CVLG) stock prices were down by 19.60% shortly after market trading commenced on October 21st, 2021. This brought the price per share down to USD$27.73 early on in the trading day.

Do You Own These 7 Inflation-Survival Stocks?

Inflation is still near 40-year highs and rising prices are putting a big dent in our wallets. Unless you find out how to protect your portfolio and outpace inflation, you'll keep being at the mercy of economic factors out of your control. Especially since the price of electricity, food, and shelter are creeping up higher than ever. In this special report, I detail 7 stocks to help you survive and thrive in today's market. They're backed by solid companies, positioned to profit during tough economic times, and offer out-sized dividends to help you outpace inflation.

Click here to get your free copy of the report

Sponsored

Stellar Q3 2021

October 20th 2021 saw CVLG stock report third quarter earnings in the amount of USD$0.97 per share and non-GAAP adjusted earnings of USD$1.02 per share. These numbers represent the highest earnings for any quarter in the company’s history. The company’s current trajectory of run-rate leads has resulted in expectations of the generation of more than USD$1 billion in revenue, as well as the highest annual earnings per share in the company’s history. Backed by the stellar quarter, the company is continuing to further improve its profitability, with a particular focus in the Dedicated segment, which fell short of previous guidance for the quarter.

CVLG Stock’s Market Environment

Over the course of the third quarter of fiscal 2021, CVLG stock reported a continuation of the exceptionally strong freight market seen recently. This was largely attributable to growing economy activity, low inventories, and supply chain disruptions. Further consolidating this effect was a constrained capacity on account of an intensifying national driver shortage. These conditions persisted into the fourth quarter of the current fiscal year. Nevertheless, both the Expedited and Managed Freight service offerings have continued to exceed the company’s expectations. This was through improvements in equipment utilization, rates, and a particularly strong spot rate market.

Dedicated Segment Falls Short

The company’s Dedicated segment, however, failed to meet previous expectations by failing to improve sequentially over the course of the first half of fiscal 2021. While the company reported success in securing improved rates for the segment, continued supply chain disruptions with various key customers prevented the company from achieving its goals. The impact of inflation in cost per mile also contributed to the company’s failing to achieve desired improvements in profitability. CVLG stock is continuing to address these issues with its customers through contract revisions, as well as with the provision of exit notices to certain customers where efforts proved unsuccessful.

Future Outlook for CVLG Stock

The company is keen to push for the continued trajectory of success they have experienced in the first half of fiscal 2021. CVLG stock is taking steps to ensure it is able to capitalize on the opportunities afforded to it in the upcoming quarters. Current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate consistent and organic increases in shareholder value over the long term.

Leave a Comment

Your email address will not be published. Required fields are marked *

Related Posts

385

SPECIAL GIFT

WE HAVE A GIFT FOR YOU

The 5 Best Inflation Stocks for 2022

100% free. stop anytime no spam

Get our free report on the stocks that we recommend for investors who want to protect their portfolios from inflation.

Receive Best Stock To Trade Before The Opening Bell

 

 

100% Free. Stop Anytime. No Spam