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Werner (WERN) Q2 Earnings Miss Estimates, Revenues Beat
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Werner Enterprises, Inc. (WERN - Free Report) reported mixed second-quarter 2023 results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed.
Quarterly earnings (excluding 5 cents from non-recurring items) of 52 cents per share lagged the Zacks Consensus Estimate of 57 cents. The bottom line plunged 40.2% on a year-over-year basis.
Total revenues of $811.1 million outperformed the Zacks Consensus Estimate of $807.9 million. The top line dipped 3% on a year-over-year basis primarily due to a decrease in Truckload Transportation Services (TTS) revenues.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
Operating income (adjusted) of $51.1 million fell 34% year over year. Adjusted operating margin contracted 300 basis points (bps) to 6.3%. Total operating expenses rose marginally to $763.9 million in the reported quarter.
Segmental Results
Revenues in the TTS segment tumbled 7% on a year-over-year basis to $570.2 million due to soft freight demand. Adjusted operating income decreased 28% to $47.9 million. Adjusted operating margin collapsed 240 bps to 8.4%. Adjusted operating ratio (operating expenses as a percentage of revenues) improved 240 bps to 91.6%.
Logistics’ revenues totaled $224.6 million, up 10% year over year. Adjusted operating income of $5.5 million declined 58% year over year. Adjusted operating margin fell 400 bps to 2.4%.
Liquidity
As of Jun 30, Werner had cash and cash equivalents of $46.5 million compared with $107.2 million at the end of December 2022. Long-term debt (net of current portion) totaled $636.3 million at the end of the reported quarter compared with $687.5 million at December 2022 end.
The company generated $114.9 million of cash from operations in second-quarter 2023. Capital expenditure amounted to $151.4 million.
In the quarter under review, Werner did not repurchase any share. As of Jun 30, WERN had 2.3 million shares available under its share repurchase authorization.
Outlook
For 2023, Werner anticipates TTS truck growth to be between (4%) and (2%) compared with the prior view of (2%) and 1%.
Net capital expenditure is estimated in the range of $400-$450 million (prior view: $350-$400 million). Under the TTS guidance, WERN projects dedicated revenues per truck per week growth to rise from breakeven to 3% in 2023.
One-way Truckload revenues per total mile are predicted to decline 4-7% (prior view: 3-6% descend). Werner expects the average truck age to be 2.2 years for 2023, while the trailer age is forecast to be five years.
Currently, Werner carries a Zacks Rank #5 (Strong Sell)
Q2 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year. Total operating revenues of $3,132.6 million also outpaced the Zacks Consensus Estimate of $3,347.5 million. The top line tumbled 18.4% year over year.
The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal and 21% in Truckload. A 4% decrease in productivity in Dedicated Capacity Solutions added to the woes. Changes in customer rate, freight mix and lower fuel surcharge revenues resulted in this downtick.
Delta Air Lines’ (DAL - Free Report) second-quarter 2023 earnings (excluding 16 cents from non-recurring items) of $2.68 per share comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported earnings of $1.44 a year ago.
Revenues of $15,578 million outshined the Zacks Consensus Estimate of $14,991.6 million. Total revenues climbed 12.69% on a year-over-year basis driven by higher air-travel demand. Adjusted operating margin was 17.1% compared with 11.7% in the prior-year period.
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Werner (WERN) Q2 Earnings Miss Estimates, Revenues Beat
Werner Enterprises, Inc. (WERN - Free Report) reported mixed second-quarter 2023 results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed.
Quarterly earnings (excluding 5 cents from non-recurring items) of 52 cents per share lagged the Zacks Consensus Estimate of 57 cents. The bottom line plunged 40.2% on a year-over-year basis.
Total revenues of $811.1 million outperformed the Zacks Consensus Estimate of $807.9 million. The top line dipped 3% on a year-over-year basis primarily due to a decrease in Truckload Transportation Services (TTS) revenues.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
Werner Enterprises, Inc. price-consensus-eps-surprise-chart | Werner Enterprises, Inc. Quote
Operating income (adjusted) of $51.1 million fell 34% year over year. Adjusted operating margin contracted 300 basis points (bps) to 6.3%. Total operating expenses rose marginally to $763.9 million in the reported quarter.
Segmental Results
Revenues in the TTS segment tumbled 7% on a year-over-year basis to $570.2 million due to soft freight demand. Adjusted operating income decreased 28% to $47.9 million. Adjusted operating margin collapsed 240 bps to 8.4%. Adjusted operating ratio (operating expenses as a percentage of revenues) improved 240 bps to 91.6%.
Logistics’ revenues totaled $224.6 million, up 10% year over year. Adjusted operating income of $5.5 million declined 58% year over year. Adjusted operating margin fell 400 bps to 2.4%.
Liquidity
As of Jun 30, Werner had cash and cash equivalents of $46.5 million compared with $107.2 million at the end of December 2022. Long-term debt (net of current portion) totaled $636.3 million at the end of the reported quarter compared with $687.5 million at December 2022 end.
The company generated $114.9 million of cash from operations in second-quarter 2023. Capital expenditure amounted to $151.4 million.
In the quarter under review, Werner did not repurchase any share. As of Jun 30, WERN had 2.3 million shares available under its share repurchase authorization.
Outlook
For 2023, Werner anticipates TTS truck growth to be between (4%) and (2%) compared with the prior view of (2%) and 1%.
Net capital expenditure is estimated in the range of $400-$450 million (prior view: $350-$400 million). Under the TTS guidance, WERN projects dedicated revenues per truck per week growth to rise from breakeven to 3% in 2023.
One-way Truckload revenues per total mile are predicted to decline 4-7% (prior view: 3-6% descend). Werner expects the average truck age to be 2.2 years for 2023, while the trailer age is forecast to be five years.
Currently, Werner carries a Zacks Rank #5 (Strong Sell)
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year. Total operating revenues of $3,132.6 million also outpaced the Zacks Consensus Estimate of $3,347.5 million. The top line tumbled 18.4% year over year.
The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal and 21% in Truckload. A 4% decrease in productivity in Dedicated Capacity Solutions added to the woes. Changes in customer rate, freight mix and lower fuel surcharge revenues resulted in this downtick.
Delta Air Lines’ (DAL - Free Report) second-quarter 2023 earnings (excluding 16 cents from non-recurring items) of $2.68 per share comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported earnings of $1.44 a year ago.
Revenues of $15,578 million outshined the Zacks Consensus Estimate of $14,991.6 million. Total revenues climbed 12.69% on a year-over-year basis driven by higher air-travel demand. Adjusted operating margin was 17.1% compared with 11.7% in the prior-year period.