Covenant Transportation Group, Inc. (CVTI)

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AP
Convenant Transportation shares leap after 2Q beat
Wednesday July 30, 1:41 pm ET
Convenant Transportation shares rise after trucker reports narrower-than-expected 2nd-qtr loss


NEW YORK (AP) -- Shares of Covenant Transportation Group Inc. rose Wednesday, after the trucking company reported a narrower-than-expected second-quarter loss.
The Chattanooga, Tenn.-based company reported a loss of $2.3 million, or 17 cents per share, compared with a year-ago loss of $11.3 million, or 80 cents per share.


Revenue jumped 18 percent to $208.7 million, mostly from fuel surcharges passed on to customers.

Analysts predicted a loss of 34 cents per share on revenue of $189.4 million.

"Although we are not satisfied with our financial performance, we are cautiously optimistic that the dedication of our employees and an improving freight market started to move us in the right direction during the second quarter," the company said in a statement.

Morgan Keegan analyst Chaz Jones attributed the results to the company's higher fuel surcharge recovery and lower costs for employee salaries and benefits.

However, he noted that "while the company is beginning to show signs of operational improvement following a painful three year restructuring period, the model still has a little further to go before reaching sustainable profitability."

Shares rose 51 cents, or 11.5 percent, to $4.94 in midday trading. The stock has traded between $2.90 and $9 in the past year.






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