CHATTANOOGA, Tenn., May 19, 2020 -- Covenant Transportation Group, Inc.  (NASDAQ/GS: CVTI) (“CTG”) announced today financial and operating results for the first quarter ended.

Covenant Transportation (CVTI) delivered earnings and revenue surprises of 10.00% and 10.48%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?

The coronavirus outbreak might have worsened the freight market conditions and in turn weighed on C.H. Robinson's (CHRW) Q1 volumes.

CHATTANOOGA, Tenn., March 26, 2020 -- Covenant Transportation Group, Inc. (NASDAQ/GS: CVTI) (the “Company”) announced today that it temporarily suspended its stock repurchase.

Today we are going to look at Covenant Transportation Group, Inc. (NASDAQ:CVTI) to see whether it might be an...

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Q4 2019 Covenant Transportation Group Inc Earnings Call

A new capacity crunch is coming to the industry very soon, and that is a very good thing for rates and an industry that is struggling with an overcapacity situation. Hogan was joined by Kevin Burch, president of Jet Express, as the duo discussed a range of topics from the economy to safety with Tim DeNoyer, vice president and senior analyst at ACT Research.

Canadian Pacific's (CP) first-quarter 2020 performance is likely to have benefited from impressive freight revenues and affected by supply chain disruptions

Covenant Transportation Group, Inc.  (NASDAQ/GS: CVTI) (“CTG”) today announced its plans for closing its Texarkana, Arkansas terminal and an update on liquidity as of March 31, 2020. CTG is continuing to provide its high-quality solo-driven refrigerated service. The terminal closure is expected to result in a permanent workforce reduction of approximately 150 support staff teammates, who will be provided severance and healthcare insurance support.

CHATTANOOGA, Tenn., May 18, 2020 -- Covenant Transportation Group, Inc. (Nasdaq/GS: CVTI) announced it plans to release its first quarter earnings after 4:00 p.m. Eastern time.

NEW YORK, NY / ACCESSWIRE / May 20, 2020 / Covenant Transportation Group, Inc. (NASDAQ:CVTI) will be discussing their earnings results in their 2020 First Quarter Earnings call to be held on May 20, 2020 ...

Covenant Transportation Group (NASDAQ: CVTI) sees progress on its strategic plan, which is centered on replacing poorly performing freight, shuttering terminals and trimming its asset-based fleet.  The Chattanooga, Tennessee-based truckload (TL) carrier reported a first quarter adjusted net loss of $1.7 million, $0.09 per share, a penny ahead of the consensus estimate.Part of Covenant's organizational refocus is to better allocate capital to higher margin offerings like contract logistics and expedited. In alignment with these efforts, the company plans to reduce its 3,000-unit tractor fleet by 12% to 14% by year-end to improve equipment utilization.A good portion of asset disposals took place in April. The company has also lowered expenses throughout the organization through layoffs, suspending the 401k match and executive salary reductions. Management expects to see relief on several expense lines – salaries, wages and benefits; taxes and licenses; depreciation; communications; maintenance and interest expense – moving forward given the recent actions taken.One cost headwind will be the insurance and claims line, which increased by more than $0.05 per mile in the quarter due to claims accruals related to auto liability claims. The carrier's insurance premiums renewed $500,000 higher in April and it has increased the self-insured portion of its insurance program, presenting a potential source of "earnings volatility" as its risk exposure increases.Further, fleet leasing company Transport Enterprise Leasing (TEL), in which Covenant holds a 49% interest, resulted in $0.03 per share of the loss in the quarter given declines for truck demand. Management expects TEL to be a headwind until the fourth quarter. There is also the potential for asset impairment charges due to lower values on some of the terminals and equipment the company plans to sell.On the company's earnings call, Chairman and CEO David Parker said April was the "worst" operating environment he has seen in his 47 years in the business. April was marked by a swift decline in volumes, pushing spot rates lower. Parker said spot rates have moved to 20-year lows.The shutdown in the automotive sector resulted in a higher percentage of Covenant's freight mix coming from the spot market. However, cost actions taken allowed the carrier to essentially break-even during the month.Covenant has seen a stabilization in volumes and price during May. Parker pointed to green shoots like the resumption in automotive manufacturing, strong produce shipments coming out of California and the Southeast and retailers starting to point to the end of May-early June as a time-frame when they will need equipment.On the auto restart, Parker said the company had roughly 280 to 300 trucks, or 10% to 12% of its fleet, idled when the auto industry closed. Some of that equipment was placed into service in verticals that saw demand spike as stay-at-home orders were issued. Parker said the automotive original equipment manufacturers (OEMs) are coming on-line in one quarter increments, adding 25% of production capabilities per week. He expects the OEMs Covenant serves to be back to 75% to 100% production by mid-June.First Quarter ResultsCovenant reported a 2.6% year-over-year decline in consolidated revenue of $214 million. TL Freight revenue declined 1.7% to $147 million as the carrier's average tractor count declined 133 units compared to the year-ago period. Revenue per tractor per week increased 1.6% to $3,782 as miles increased 5.5% and revenue per loaded mile moved 3.5% lower. Freight revenue per total mile was down 3.7% in the carrier's highway segment and 1.6% lower in the dedicated offering.Managed freight revenue declined 4% year-over-year to $43 million as brokerage revenue declined 10.4%. The division reported $1.6 million in operating income, $1.1 million lower year-over-year. The factoring business saw operating income improve $700,000 to $2.2 million in the period.On a consolidated basis, the company's adjusted operating ratio deteriorated 240 basis points to 99.3%. As noted above, insurance and claims expense was up by more than $0.05 per mile, partially offset by a more than $0.03 per mile decline in operations and maintenance expense as the carrier is running newer tractors (1.8 year average age compared to a 2.3 year average in the same period of 2019). Operating ratio also benefited from a $1.4 million increase in gains on sale due to the $1.7 million sale of its Orlando, Florida terminal.Shares of CVTI are up more than 10% in midday trading.Image: Jim Allen, FreightwavesSee more from Benzinga * Riskpulse Calls for Active 2020 Hurricane Season * Salesforce Labs Unleashes Supplyforce Bot Communication Tool * Wolfe Research Conference Focuses On A Truckload Restart(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

John A. Tweed has been named Co-President and Chief Operating Officer, with responsibility for enterprise-wide operations, sales, and safety functions, as well as the expansion of our contract logistics business and improvements in our operating efficiency. Joey B. Hogan has been named Co-President and Chief Administrative Officer, with responsibility for all enterprise-wide administrative functions, including strategic planning, finance, human resources, and information technology, as well as equipment and maintenance.

Covenant Transportation (CVTI) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

New Strong Buy Stocks for March 30th

Covenant Transportation Group (CVTI) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.

Covenant Transportation (CVTI) saw a big move last session, as its shares jumped more than 12% on the day, amid huge volumes.

If you own shares in Covenant Transportation Group, Inc. (NASDAQ:CVTI) then it's worth thinking about how it...