Covenant Logistics reports Q4 non-GAAP EPS $1.37, consensus $1.41

Reports Q4 revenue $296.06M, consensus $294.67M. CEO David Parker, commented: "Q4 earnings were 81c per diluted share and non-GAAP adjusted earnings were $1.37 per diluted share. The primary difference between the two relates to an early lease abandonment and disposal charge and excess equipment expense…For 2022, we generated over $1.0B in freight revenue, the highest annual EPS in our history, and a 15.3% return on average invested capital. We were also successful in acquiring AAT, repurchasing 3.4 million or approximately 20% of outstanding common stock, and for the first time in company history distributing four quarterly dividend payments, all while maintaining moderately low debt. Despite these unprecedented achievements, our Q4 results undoubtedly reflect sequential softening in the freight market, continued inflationary pressure and the cost of significant excess equipment. While we anticipate improved equipment related costs in 2023, we believe the freight market, as a combination of freight rates and volumes, will remain unfavorable compared to the prior year for the next several quarters…Our 49% equity method investment with Transport Enterprise Leasing – TEL – contributed pre-tax net income of $3.9M, or $0.21 per share, compared to $5.2 million, or 23c per share, in the 2021 quarter…We anticipate sequential improvement to TEL’s results in 1Q23."