Can CVLG's EPS rebound in 2025 after 2024 slump?
4/13/2025 04:38pm
**Covenant Logistics' EPS is not expected to rebound in 2025 after the slump in 2024.** Here's the analysis to support this conclusion:
1. **Current Financial Performance**: CVLG's EPS for 2024 was $1.3, which is the most recent data available. This is a critical benchmark for understanding the company's earnings trajectory.
|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|CVLG|CVLG.N|Covenant Logistics|2024 Q1|-75.83333333333333|0.29|169|
|CVLG|CVLG.N|Covenant Logistics|2024 Q2|-3.2967032967032996|0.88|169|
|CVLG|CVLG.N|Covenant Logistics|2024 Q3|-5.0505050505050555|0.94|169|
2. **Market Conditions and Outlook**: Despite the optimistic tone from the company's leadership, the market conditions in 2025 are expected to be challenging. The company's stock hit a 52-week low in 2025, indicating a bearish sentiment among investors. Moreover, the EPS for 2025 is not available, and the company's performance is expected to be influenced by the broader market conditions and economic factors.
3. **Strategic Initiatives**: Covenant Logistics is optimistic about the freight market's recovery, expecting improvements by mid-2025. However, the EPS rebound is not guaranteed solely based on market conditions. The company's internal initiatives, such as negotiating pricing and cost control measures, will also play a crucial role in determining its earnings.
4. **Comparing 2024 with 2025**: The company's consolidated earnings are expected to improve in 2025 compared to 2024. However, this does not necessarily mean that the EPS will rebound to a higher figure than in 2024. It could remain stable or even decrease if the cost increases outweigh the revenue growth.
5. **Challenges and External Factors**: The company has faced challenges, including temporary customer shutdowns and volume reductions, which have impacted its EPS. External factors, such as the decline in TEL investment income, also contribute to the overall earnings picture.
In conclusion, while Covenant Logistics is optimistic about the market conditions and has strategic initiatives in place, the EPS not rebounding in 2025 after the 2024 slump is a plausible scenario. The company's performance will be closely tied to market conditions and its ability to execute its strategic plans effectively.