Covenant Transport (CVTI) Misses Q2 EPS by 7c; Comments on Profitability Potential for Remainder of Year

July 27, 2009 5:28 PM EDT

Covenant Transport (Nasdaq: CVTI) reports Q2 loss of $0.22, 7 cents worse than the analyst estimate of ($0.15). Revenue for the quarter was $144.1 million, versus the consensus of $152.19 million.

"Our goal of profitability for the year has not changed. However, because of the magnitude of year-over-year reductions in freight rates and our results for the first six months of 2009, we acknowledge the reduced probability of achieving our goal, but continue our expectation of recording a profit for the final six months of 2009. Based on our second quarter results, to attain profitability for the second half of 2009 will require us to implement additional identified cost savings, avoid multiple large casualty claims, maintain net fuel costs at current levels, hold rates steady, and slightly improve utilization of our remaining fleet of trucks for the rest of the fiscal year. To achieve profitability for the entire fiscal year would require success on the cost items, no large casualty claims, plus a near-term change in the freight environment that allows moderately higher freight rates and miles per truck."

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