Canadian National Railway Company (NYSE:CNI) is included among the 15 Dividend Stocks with Low Payout Ratios and Strong Upside. RBC Capital Updates Canadian National (CNI) Outlook Ahead of Rail Earnings Season Photo by Vitaly Taranov on Unsplash On December 18, RBC Capital lowered its price target on Canadian National Railway Company (NYSE:CNI) to C$153 from C$158 and kept an Outperform rating. The change came as part of a broader note previewing fourth-quarter results for Class I railroads. The firm sa ...

Core Insights - Covenant Logistics Group reported third quarter results with earnings of $0.35 per diluted share, reflecting flat year-over-year performance in asset-light business units and lower performance in Truckload business units due to higher costs and under-utilized equipment [2][3] Financial Performance - Total revenue for the third quarter was $296.9 million, a 3.1% increase from $287.9 million in the prior year [6][29] - Freight revenue, excluding fuel surcharge, was $268.8 million, up 4.0% from $258.6 million year-over-year [29] - Operating income decreased to $7.9 million from $16.2 million in the prior year [6][29] - Adjusted net income was $11.5 million, down from $15.2 million year-over-year [6][29] - The operating ratio increased to 97.3% from 94.4% in the prior year [6][29] Segment Performance - Truckload operations generated total revenue of $199.7 million, a slight increase of 0.3% year-over-year [11] - Expedited segment revenue decreased by $7.2 million, or 8.2%, while Dedicated segment revenue increased by $8.9 million, or 10.8% [12][30] - Managed Freight segment revenue rose by 14.0% year-over-year, attributed to new business awarded by a large customer [17][30] - Warehousing segment revenue was relatively stable, with a slight decrease of $0.4 million compared to the prior year [20] Capitalization and Liquidity - Total indebtedness increased by $48.7 million to approximately $268.3 million compared to December 31, 2024 [21][31] - Net indebtedness to total capitalization ratio rose to 38.8% from 33.4% at the end of 2024 [21][31] - Cash and cash equivalents totaled $2.7 million, with no outstanding borrowings under the ABL credit facility [21] Outlook - The company expects Adjusted EPS for the fourth quarter to be lower than the third quarter due to various negative factors, including credit losses and the impact of a government shutdown [23][24] - Long-term outlook remains positive with expectations of improving market conditions and internal plans to enhance profitability [24][25]

Core Insights - Covenant Logistics Group reported second quarter earnings of $0.36 per diluted share, with a non-GAAP adjusted earnings of $0.45 per diluted share [2] - The company achieved a freight revenue growth of 7.8% year-over-year, reaching $276.5 million, marking an all-time high for any quarter [3] - The company repurchased approximately 1.6 million shares of common stock for $35.2 million as part of a $50 million stock repurchase program [3] Financial Performance - Total revenue for the second quarter was $302.9 million, a 5.3% increase from $287.5 million in the prior year [4] - Freight revenue, excluding fuel surcharge, was $276.5 million, up from $256.5 million, reflecting a 7.8% increase [4] - Operating income decreased to $11.6 million from $15.6 million year-over-year, while adjusted operating income was $15.0 million compared to $18.7 million [4] - Net income for the quarter was $9.8 million, down from $12.2 million in the previous year [4] Segment Performance - Truckload operations saw a slight revenue decrease of 0.9% to $199.6 million, primarily due to a $4.5 million drop in fuel surcharge revenue [6] - The Expedited segment's freight revenue decreased by 6.4% to $83.2 million, while the Dedicated segment's freight revenue increased by 10.2% to $90.2 million [7][27] - Managed Freight segment experienced a significant revenue increase of 28.5% to $77.6 million, driven by new business [12][13] - Warehousing segment's freight revenue increased by 0.8% to $25.6 million, but operating income decreased due to facility-related cost increases [16] Capitalization and Liquidity - As of June 30, 2025, total indebtedness increased by $49 million to approximately $268.7 million compared to December 31, 2024 [17] - The net indebtedness to total capitalization ratio rose to 39.2% from 33.4% [17][28] - The company had cash and cash equivalents of $0.1 million and $24.6 million in outstanding borrowings under its ABL credit facility [18] Outlook - The company anticipates gradual improvement in general freight market fundamentals, despite ongoing fluctuations in inventory levels and supply chain patterns [21] - There is optimism for demand improvement as excess inventories are reduced and tax and monetary policy changes take effect [21] - The company aims to grow profitably and generate meaningful returns for stockholders while expanding its dedicated fleet and exploring acquisition opportunities [21]

Core Viewpoint - Covenant Logistics Group, Inc. is set to release its second quarter earnings on July 23, 2025, followed by a live conference call on July 24, 2025, to discuss the results [1] Company Overview - Covenant Logistics Group, Inc. provides a range of transportation and logistics services across the United States, including asset-based expedited and dedicated truckload capacity, asset-light warehousing, transportation management, and freight brokerage [1] - The company also has an affiliated entity, Transport Enterprise Leasing, which offers revenue equipment sales and leasing services to the trucking industry [1] - Covenant's Class A common stock is listed on the New York Stock Exchange under the ticker symbol "CVLG" [1] Conference Call Details - The earnings release will occur after 4:00 p.m. Eastern time on July 23, 2025, with a conference call scheduled for 10:00 a.m. Eastern time on July 24, 2025 [1] - Participants can join the call by dialing 877-550-1505 (U.S./Canada) or 0800-524-4760 (International) [1] - An audio replay of the call will be available for one week post-call at 800-645-7964, access code 3895, and will also be accessible on the investor website under "Audio Archives" [1]

Core Insights - Covenant Logistics Group reported a decrease in adjusted earnings per share to $0.32 for Q1 2025, down from $0.42 in Q1 2024, primarily due to lower equipment utilization caused by adverse weather and avian influenza outbreaks [2][3] - The company remains optimistic about its strategy and market position, with expectations of revenue growth in its Dedicated, Managed Freight, and Warehousing divisions compared to Q2 2024 [2][3] - A new $50 million stock repurchase program was announced, reflecting the company's confidence in its future [2][15] Financial Performance - Total revenue for Q1 2025 was $269.4 million, a decrease of 3.4% from $278.8 million in Q1 2024 [3][21] - Freight revenue, excluding fuel surcharge, was $243.2 million, down 1.8% from $247.7 million in the prior year [3][21] - Net income increased to $6.6 million in Q1 2025 from $4.0 million in Q1 2024, with diluted earnings per share rising to $0.24 from $0.14 [3][22] Segment Performance - Truckload operations saw total revenue decrease by 0.9% to $188.3 million, with freight revenue growing by 2.0% [5][6] - The Expedited segment's freight revenue decreased by 7.3% to $80.2 million, while the Dedicated segment's freight revenue increased by 13.1% to $82.1 million [5][6] - Managed Freight's revenue fell by 9.6% to $56.9 million, but operating income improved by 35.9% [9][10] - Warehousing segment revenue decreased by 6.0% to $24.0 million, with operating income dropping to $1.0 million [10] Operating Metrics - Operating income for Q1 2025 was $7.6 million, compared to $4.3 million in Q1 2024, with an operating ratio of 97.2% [3][21] - The average freight revenue per tractor per week decreased to $5,416 from $5,651, while average miles per tractor per period fell to 27,521 from 31,201 [4][22] - The company reported a weighted average of 2,331 tractors for the period, an increase from 2,167 in the prior year [4][22] Capitalization and Liquidity - Total indebtedness increased by $5.8 million to approximately $225.4 million as of March 31, 2025 [11][12] - The net indebtedness to total capitalization ratio rose to 33.7% from 33.4% at the end of 2024 [11][12] - Cash and cash equivalents totaled $11.2 million, with available borrowing capacity of $90.1 million under its ABL credit facility [13] Outlook - The company anticipates a gradual improvement in the general freight market, although uncertainties regarding global trade policies may pose challenges [16] - Plans for net capital equipment expenditures for 2025 are projected to be between $55 million and $65 million, subject to change based on growth opportunities [14]