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Werner (WERN) Shares Up 6.1% Post Q1 Earnings & Revenue Beat
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Werner Enterprises Inc. (WERN - Free Report) reported better-than-expected earnings and revenues for the first quarter of 2022. Both earnings and revenues also increased significantly year over year. Following this strong performance, shares of WERN have gained 6.1%.
Werner’s first-quarter earnings (excluding 14 cents from non-recurring items) of 96 cents per share surpassed the Zacks Consensus Estimate of 86 cents. The bottom line rose 41.2% on a year-over-year basis.
Total revenues of $764.6 million also outperformed the Zacks Consensus Estimate of $744.3 million. The top line increased 24% on a year-over-year basis, primarily on higher revenues in the Truckload Transportation Services and Logistics segments.
Operating income (adjusted) came in at $86.2 million in the reported quarter, up 37% year over year. Adjusted operating margin rose 110 basis points (bps) to 11.3%. Operating expenses rose 35% to $180.3 million in the reported quarter.
Segmental Results
Revenues in the Truckload Transportation Services (TTS) segment increased 21% on a year-over-year basis to $558.4 million. The upside can be attributed to a 68% rise in fuel surcharge revenues. Adjusted operating income increased 33% to $78.3 million. Adjusted operating margin surged 130 bps to 14%. Adjusted operating ratio (operating expenses as a percentage of revenues) improved 130 bps to 86%. Lower the value of the metric, the better.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
The Logistics segment’s revenues totaled $189 million, up 37% year over year. The upside can be attributed to a 46% rise in truckload logistics revenues (led by a 24% increase in revenues per shipment and a 19% jump in shipments). The segment reported an adjusted operating income of $9.18 million, up more than 100% year over year. Adjusted operating margin was 4.9%, reflecting an improvement of 230 bps. The Other segment accounted for the rest of the top line.
Liquidity
As of Mar 31, 2022, Werner, currently carrying a Zacks Rank #3 (Hold), had cash and cash equivalents of $125.95 million compared with $54.2 million at 2021 end. Long-term debt (net of current portion) totaled $421.3 million at the end of the first quarter compared with $422.5 million at the end of 2021. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
Werner anticipates TTS truck growth of 2-5% for 2022 from the year-ago reported figure. Net capital expenditures are estimated in the band of $250-$300 million (previous view: $275-$325 million).
Under the TTS guidance, WERN estimates Dedicated revenue per truck per week to increase 4-6% (previous view: 3-5%) in 2022 owing to expectations of strong rates. One-way Truckload revenues per total mile are predicted to now climb 14-17% (previous outlook: 16-19%) in the second quarter of 2022 from the comparable period’s level in 2021 owing to a continued strong contractual rate increase and moderating spot rates combined with fleet mix changes.
Werner expects truck age to be 2.2 years for 2022 (commensurate with 2021), while 2022 trailer age is forecast to be 4.8 years.
Effective income tax rate is still expected to be at 24.5-25.5%.
J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year. JBHT currently carries a Zacks Rank #3.
CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.
Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year. CSX carries a Zacks Rank of 3 at present.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss incurred by UAL as coronavirus concerns continue to weigh on air-travel demand.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million. UAL is presently Zacks #3 Ranked.
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Werner (WERN) Shares Up 6.1% Post Q1 Earnings & Revenue Beat
Werner Enterprises Inc. (WERN - Free Report) reported better-than-expected earnings and revenues for the first quarter of 2022. Both earnings and revenues also increased significantly year over year. Following this strong performance, shares of WERN have gained 6.1%.
Werner’s first-quarter earnings (excluding 14 cents from non-recurring items) of 96 cents per share surpassed the Zacks Consensus Estimate of 86 cents. The bottom line rose 41.2% on a year-over-year basis.
Total revenues of $764.6 million also outperformed the Zacks Consensus Estimate of $744.3 million. The top line increased 24% on a year-over-year basis, primarily on higher revenues in the Truckload Transportation Services and Logistics segments.
Operating income (adjusted) came in at $86.2 million in the reported quarter, up 37% year over year. Adjusted operating margin rose 110 basis points (bps) to 11.3%. Operating expenses rose 35% to $180.3 million in the reported quarter.
Segmental Results
Revenues in the Truckload Transportation Services (TTS) segment increased 21% on a year-over-year basis to $558.4 million. The upside can be attributed to a 68% rise in fuel surcharge revenues. Adjusted operating income increased 33% to $78.3 million. Adjusted operating margin surged 130 bps to 14%. Adjusted operating ratio (operating expenses as a percentage of revenues) improved 130 bps to 86%. Lower the value of the metric, the better.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
Werner Enterprises, Inc. price-consensus-eps-surprise-chart | Werner Enterprises, Inc. Quote
The Logistics segment’s revenues totaled $189 million, up 37% year over year. The upside can be attributed to a 46% rise in truckload logistics revenues (led by a 24% increase in revenues per shipment and a 19% jump in shipments). The segment reported an adjusted operating income of $9.18 million, up more than 100% year over year. Adjusted operating margin was 4.9%, reflecting an improvement of 230 bps. The Other segment accounted for the rest of the top line.
Liquidity
As of Mar 31, 2022, Werner, currently carrying a Zacks Rank #3 (Hold), had cash and cash equivalents of $125.95 million compared with $54.2 million at 2021 end. Long-term debt (net of current portion) totaled $421.3 million at the end of the first quarter compared with $422.5 million at the end of 2021. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
Werner anticipates TTS truck growth of 2-5% for 2022 from the year-ago reported figure. Net capital expenditures are estimated in the band of $250-$300 million (previous view: $275-$325 million).
Under the TTS guidance, WERN estimates Dedicated revenue per truck per week to increase 4-6% (previous view: 3-5%) in 2022 owing to expectations of strong rates. One-way Truckload revenues per total mile are predicted to now climb 14-17% (previous outlook: 16-19%) in the second quarter of 2022 from the comparable period’s level in 2021 owing to a continued strong contractual rate increase and moderating spot rates combined with fleet mix changes.
Werner expects truck age to be 2.2 years for 2022 (commensurate with 2021), while 2022 trailer age is forecast to be 4.8 years.
Effective income tax rate is still expected to be at 24.5-25.5%.
Earnings Snapshots
Within the broader Transportation sector, J.B. Hunt Transport Services (JBHT - Free Report) , CSX Corporation (CSX - Free Report) and United Airlines (UAL - Free Report) recently reported first-quarter 2022 results.
J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year. JBHT currently carries a Zacks Rank #3.
CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.
Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year. CSX carries a Zacks Rank of 3 at present.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss incurred by UAL as coronavirus concerns continue to weigh on air-travel demand.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million. UAL is presently Zacks #3 Ranked.