Covenant Logistics predicts ‘delay’ in improved freight market

Officials in the Logistics Group said that the uncertainty resulting from the development of American commercial policies could delay the long -awaited recovery of the truck transport industry.

Chatanuja, Tennessi: NASDAQ: CVLG) mentioned The first quarter of the quarter After closing the market on Wednesday. The company’s officials made a phone call to discuss the results with analysts on Thursday.

“Although we expected the year 2025 years of recovery for the shipping economy, we realize that the economic uncertainty may create a delay in the improved shipping environment,” TripP Grant said during the profit call.

The Testament Logistics recorded a total revenue of $ 269.36 million for the first quarter, a 3 % decrease on an annual basis from the same period in 2024 and reduced Wall Street estimates of $ 278 million.

The profits of the modified company in the first quarter amounted to 32 cents per share, less than 10 cents of the 42 cents of Wall Street estimates.

Shipping revenues decreased by 2 % on an annual basis in the first quarter to 243.2 million dollars, while truck load revenues decreased by 1 % to $ 188.3 million.

The Covenant officials have attracted the slowdown to the outbreak of bird flu, whose work is disrupted by poultry, as well as the challenges that result in harsh weather throughout the country.

In April 2023, the logistical era acquired Huntville, headquarters Louy Tumson and his sonThe truck transport company is mainly involved in the shipping movement related to poultry.

“There is a degree of bird flu every year,” said Grant. “Just talk to the people of industry, this year may be bad like any year.”

Grant said that bird flu should not affect revenues after the first quarter.

“We felt this in the fourth quarter. I would like to say that we felt it in January, February, March; we feel it a little in April,” Grant said. “I would like to say by June, we must return 100 %. Maybe we send us 85 % today.”

The company’s officials said they expect to grow across their sectors during the next many quarters.

The allocated sector has achieved revenues of $ 93.6 million in the first quarter, an increase of 11 % on an annual basis. Revenue in the accelerated sector decreased by 10.2 % to 94.6 million dollars.

Storage revenues decreased about 6 % on an annual basis to 24 million dollars, while managed shipping decreased by 9.7 % on an annual basis to $ 56.8 million.

“I think we will see custom margins that improve, just like expediting, for two reasons,” President Paul Bonn said during the call. “I think the weather greatly affected the business in the first quarter. So with better weather and so on, this will help. This will help in dedication. Then, as we continue, the worst influenza will end in January, in early February.”