Covenant Logistics Group (NASDAQ:CVLG) is set to release its quarterly earnings results on April 27th, 2017 after the market closes. Industry analysts are expecting the trucking and logistics organization to post a per-share earnings report of $0.77 for that quarter. For those wishing to register for the company’s earnings conference call, the link has been made available.
However, according to recently released reports, Covenant Logistics Group received an elevated rating in a research report carried out by Wolfe Research on January 10th this year. From their record of analysis and data gathering, the firm upgraded Covenant Logistics Group from an “underperform” rating to a “peer perform” rating.
Apart from their recent upgrade, Covenant Logistics Group also issued statement concerning their outgoing quarterly dividend payment last March 31st at $0.11 per share for all investors listed as record holders since March 3rd same year. This calculated payout amounts to an annualized dividend yield of $0.44 or roughly 1.22% yield for each shareholder respectively. Notably, this represents a relatively substantial increase from their previous dividend payout rate of $0.08.
When looking at Covenant Logistics Group’s dividend payout ratio (DPR) calculation, it shows as just about over six percent (6.21%). The DPR calculates dividend payments based on two factors: the net income generated by shareholders in comparison with the latest earnings and profits made within specified time periods such as quarterly or annually.
Overall, analysts are optimistic about what will likely turn out as an effective quarterly report coming up soon enough for Calvin Mclnnis’ team at Covenant Logistics Group considering expectations put upon them via predictions from financial experts alongside prior performance in revenue and promising signals generated by current events.
Covenant Logistics Group: Thriving as a Strong Contender in the Logistics Industry
Logistics is the backbone of any industry, and Covenant Logistics Group (NASDAQ:CVLG) has been a prominent player in this sector. While some may argue that the market is oversaturated with logistics providers, Covenant Logistics Group continues to thrive as one of the best in the business.
The company recently released its earnings report for the quarter ending January 25th, and while they reported $1.37 EPS for the period, it missed projections by $0.14, posting below the consensus estimate of $1.51 EPS. Despite that minor hiccup, Covenant Logistics Group still managed to achieve an impressive net margin of 8.93% and a return on equity of 24.56%. The quarterly revenue of $296.06 million was slightly above analysts’ expectations.
The stock opened at $36.03 on Thursday at NASDAQ CVLG, with a 12-month low of $18.14 and a high of $40.37 over the same period. The company’s market cap stands at $477.04 million, with a P/E ratio of 5.09 and a beta of 1.42 – solid metrics for a logistics firm.
Institutional investors and hedge funds have realized the potential profitability in CVLG’s operations and have increased or reduced their stake in recent times respectively, according to reports from Royal Bank Canada, Credit Suisse AG, Virtu Financial LLC, Jane Street Group LLC and Cubist Systematic Strategies LLC.
Covenant logistics group will be looking forward to post finishes with an average projection of $4 EPS in both current fiscal year.
It is clear that Covenant Logistics Group remains a strong investment opportunity within the logistics industry based on its ability to meet targets whilst having diverse investor interest coming onboard as revealed by various institutional investors towards it shares not excluding super savvy hedge funds placing positions on its stocks also suggests its potential growth trajectory within this domain.
Overall when we consider the factors including the consistent growth over that past few years, profitability ratio and financial stability, Covenant Logistics Group can be perceived as a logistic firm demonstrating practical operational solutions while continually delivering relevant value to its shareholders.