Covenant Transportation: Falls as profit forecast disappoints

Covenant Logistics

19/03/2019 17:39

** Freight services provider's shares  CVTI.O  down 9.3 pct
at $19.42 - eyes biggest one-day pct loss in over 3 months
    ** Co sees Q1 profit/share in range of $0.18-$0.26; Midpoint
of the outlook falls below analysts' expectations of $0.24,
according to Refinitiv data
    ** Says truckload freight environment has been weaker in
2019 from late Jan through mid March  urn:newsml:reuters.com:*:nGNX16T1Gq
    ** Co attributes the weakness to late 2018 inventory growth
in advance of the perceived impact of tariffs, the partial
government shutdown and inclement weather 
    ** Cowen analysts lower CVTI's PT by $4 to $23 and maintains
"market perform", citing cautious stance on the trucking
industry
    ** Fellow truck companies' shares also in red; J B Hunt
Transport Services  JBHT.O , Knight-Swift Transportation  KNX.N 
down 2-4 pct; S&P 1500 trucking index falls 2.3 pct
    ** Last year, CVTI has slumped ~33 pct and the broader
 .SPCOMTRCK  index had declined 23 pct

 (Reporting by Divya R in Bengaluru)
 ((divya.renganathan@thomsonreuters.com))