Covenant Transportation tumbles on surprise Q3 loss forecast

Covenant Logistics

17/10/2019 22:31

** Freight services provider's shares  CVTI.O  fall 13.4% to
$14.06 after the bell - set to open at near 1-1/2 month low on
Friday, if losses hold
    ** CVTI expects Q3 adj. loss to be in the range of $0.08-
$0.09/shr vs analysts' avg. estimate of $0.21/shr profit,
according to Refinitiv IBES data
    ** Co says freight market continues to reflect a negative
environment, wherein available trucking capacity exceeds freight
demand  urn:newsml:reuters.com:*:nGNX32zt8C
    ** "Differences between the second and third quarters relate
to the higher non-driver wage expense, along with unfavorable
casualty, workers' compensation and group health insurance
expense"- CEO David R. Parker
    ** Larger rival Knight Swift Transportation  KNX.N  also cut
profit forecast for two quarters on Wednesday due to
overcapacity  urn:newsml:reuters.com:*:nBw7Hd5fXa
    ** CVTI set to reverse three sessions of gain, if losses
hold
    ** Up to Thursday's close, CVTI had fallen 15.47%, while the
broader Nasdaq Transport Index  .IXTR  had risen 11.63% YTD

 (Reporting by Mehr Bedi)
 ((Mehr.Bedi@thomsonreuters.com;))