Investor’s Watch List: Covenant Transportation Group, Inc. (NASDAQ: CVTI)

On Wednesday, Shares of Covenant Transportation Group, Inc. (NASDAQ: CVTI) showed the bullish trend with a higher momentum of 1.30% and ended its trading session at $26.40. The company traded total volume of 126,725 shares as contrast to its average volume of 147.41K shares. The company has a market value of $467.81M and about 17.72M shares outstanding. During the 52-week trading session, the minimum price at which share price traded was registered at $15.86 and reached the max level of $30.60.

Covenant Transportation Group, Inc.  (CVTI) declared recently financial and operating results for the fourth quarter ended December 31, 2017.

Highlights for the quarter included the following:

  • Total revenue of $203.30M, a boost of 6.5% contrast with the fourth quarter of 2016.
  • Freight revenue of $181.60M (excludes revenue from fuel surcharges), a boost of 4.7% contrast with the fourth quarter of 2016.
  • Operating income of $14.80M and an operating ratio of 91.8%, contrast with operating income of $12.30M and an operating ratio of 92.9% in the fourth quarter of 2016. Operating ratio is defined as: total operating expenses minus fuel surcharge revenue, divided by freight revenue.
  • Net income of $49.30M, or $2.68 per diluted share, contrast with net income of $6.00M, or $0.33 per diluted share in the fourth quarter of 2016.
  • In the fourth quarter of 2017, net income includes $40.10M, or $2.18 per diluted share, of income tax benefit resulting mainly from our reasonable estimate of the revaluation of our net deferred tax balances at December 31, 2017 as a result of the recently enacted Tax Cuts and Jobs Act.
  • On a non-GAAP basis, apart from the $40.10M reduction in income tax expense as a result of the Tax Cuts and Jobs Act, the fourth quarter of 2017 effective income tax rate was 32.7%. Mainly as a result of tax-planning strategies implemented during the fourth quarter of 2017, we were able to remove valuation allowances on certain state tax net operating losses providing for additional favorable impact to the effective income tax rate. The fourth quarter effective income tax rates were (261.8%) and 44.6% for 2017 and 2016, respectively.

The Company offered net profit margin of 7.90% while its gross profit margin was 55.00%. ROE was recorded as 21.90% while beta factor was 1.65. The stock, as of recent close, has shown the weekly upbeat performance of 2.25% which was maintained at -8.11% in this year.

Pamela Lord

Services Reporter

I am Pamela Lord and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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Email: pamela.lord@thestockgem.com

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