Financial Performance - Operating revenues for the year ended December 31, 2024, were $3,030,258, a decrease of 7.7% compared to $3,283,499 in 2023[193]. - Net income attributable to Werner for 2024 was $34,233, down 69.5% from $112,382 in 2023[193]. - Comprehensive income attributable to Werner for 2024 was $25,480, down from $113,990 in 2023[196]. - Net income for 2024 was $33,570,000, down from $112,290,000 in 2023, representing a decrease of about 70%[201]. - Basic earnings per share for 2024 were $0.55, down from $1.77 in 2023, a decline of 68.9%[230]. - Total consolidated revenues for the year ended December 31, 2024, were $3.030 billion, a decrease from $3.283 billion in 2023[314][315]. Operating Expenses - Total operating expenses decreased to $2,964,110 in 2024 from $3,107,083 in 2023, reflecting a reduction of 4.6%[193]. - Fuel expenses decreased significantly to $275,413 in 2024 from $345,001 in 2023, a reduction of 20.2%[193]. - Operating expenses for the reportable segments were $2,891,439, with significant costs in salaries, wages, and benefits totaling $990,060[317]. Assets and Liabilities - Total current assets decreased from $634,628,000 in 2023 to $541,773,000 in 2024, a decline of approximately 14.6%[199]. - Total liabilities decreased slightly from $1,590,990,000 in 2023 to $1,558,361,000 in 2024, a decrease of about 2%[199]. - Total stockholders' equity decreased from $1,528,339,000 in 2023 to $1,455,932,000 in 2024, a decline of about 4.7%[199]. - Outstanding debt totaled $650.0 million as of December 31, 2024, slightly up from $648.8 million in 2023[280]. Cash Flow - Net cash provided by operating activities was $329,734,000 in 2024, down from $474,366,000 in 2023, a decline of approximately 30.5%[201]. - Cash and cash equivalents decreased from $61,723,000 in 2023 to $40,752,000 in 2024, a reduction of approximately 34%[201]. Customer Concentration - The company's ten largest customers accounted for 48% of total revenues in 2024, with Dollar General being the largest customer at 11% of total revenues[207]. - The largest customer, Dollar General, accounted for 11% of total revenues in 2024, down from 14% in 2022[320]. Acquisitions - The company acquired ReedTMS for a total purchase price of $108.6 million, with an additional cash payment of $1.5 million based on performance goals achieved[235]. - The acquisition of Baylor was completed for $89.0 million, with potential future contingent earnout payments ranging from $0 to $15.0 million based on performance[237]. Equity and Stock Repurchase - The company repurchased $67,069,000 of common stock in 2024, compared to no repurchases in 2023[201]. - Dividends on common stock increased slightly from $34,208,000 in 2023 to $35,066,000 in 2024[201]. - Dividends on common stock increased to $0.56 per share in 2024 from $0.55 per share in 2023, totaling $34,843,000 in dividends paid[203]. Foreign Currency and Translation - Foreign currency translation losses were $7.4 million for the year ended December 31, 2024, compared to gains of $6.1 million in 2023[176]. - Comprehensive income for the year ended December 31, 2024, included foreign currency translation adjustment losses of $17.4 million[231]. Debt and Interest - The interest expense increased to $39,212 in 2024 from $33,535 in 2023, an increase of 16.1%[193]. - The company had $355.0 million of variable interest rate debt outstanding at December 31, 2024, with an effective interest rate fixed at 5.97%[177]. Segment Performance - Truckload Transportation Services revenue was $2,138.3 million in 2024, down from $2,310.8 million in 2023, reflecting a decline of 7.4%[239]. - Werner Logistics revenue decreased to $831.3 million in 2024 from $910.4 million in 2023, a decline of 8.7%[239]. - The reportable segment operating income for Truckload Transportation Services in 2024 was $75.166 million, while Werner Logistics reported an operating loss of $881,000[314]. Other Financial Metrics - Non-cash equity compensation expense for 2024 was $8,856,000, reflecting an increase from previous years[203]. - The company recognized a net interest expense of $129 thousand in 2024, up from $70 thousand in 2023[286]. - The total unrecognized compensation cost related to non-vested equity compensation awards was approximately $10.4 million as of December 31, 2024[289].

Core Insights - Werner Enterprises, Inc. (WERN) reported disappointing fourth-quarter 2024 results, with earnings and revenues falling short of the Zacks Consensus Estimate, leading to a significant year-over-year decline in earnings per share (EPS) and total revenues [1][2]. Financial Performance - Quarterly EPS was 8 cents, missing the Zacks Consensus Estimate of 21 cents, and representing a 79.4% decline year-over-year [1]. - Total revenues amounted to $754.7 million, below the Zacks Consensus Estimate of $772 million, and decreased by 8.2% year-over-year [2]. - Truckload Transportation Services (TTS) revenues decreased by $52.8 million or 9%, while Logistics revenues fell by $13.8 million or 6% [2]. - Adjusted operating income was $12.2 million, down 69% year-over-year, with an adjusted operating margin of 1.6%, a decline of 320 basis points from the previous year [2]. Segment Analysis - TTS segment revenues decreased by 9% year-over-year to $527.3 million, primarily due to lower fuel surcharge revenues [3]. - Adjusted operating income for the TTS segment was $14.6 million, a 61% decline year-over-year, impacted by unfavorable claims development and a smaller fleet size [3]. - Logistics revenues totaled $213.2 million, down 6% year-over-year, with adjusted operating income declining 21% to $2.39 million [4]. Liquidity and Capital Expenditures - As of December 31, 2024, cash and cash equivalents were $40.75 million, down from $54.66 million in the prior quarter [5]. - Long-term debt decreased to $630 million from $690 million in the previous quarter [5]. - The company generated $71 million in cash from operations, with net capital expenditures of $28.7 million during the fourth quarter [5]. Share Repurchase and Future Outlook - WERN did not repurchase any shares in the fourth quarter of 2024, with 3.9 million shares remaining under its repurchase authorization [6]. - For 2025, the company anticipates TTS truck growth to improve between 1-5%, with net capital expenditures projected at $185-$235 million [7]. - The company expects dedicated revenues per truck per week to grow from breakeven to 3% in 2025, and one-way Truckload revenues per total mile to improve by 1-4% [7].

Financial Data and Key Metrics Changes - In Q4 2024, revenues totaled $755 million, down 8% year-over-year [30] - Adjusted EPS was $0.08, a decrease of $0.31 compared to the previous year [30] - Adjusted operating margin was 1.6%, a decrease of 320 basis points [30] Business Line Data and Key Metrics Changes - Truckload Transportation Services (TTS) revenue for the quarter was $527 million, down 9% [31] - TTS adjusted operating income was $14.6 million, 61% lower year-over-year [32] - Logistics revenue was $213 million, representing 28% of total revenues, down 6% year-over-year but up 3% sequentially [43] Market Data and Key Metrics Changes - One-way rates improved over 300 basis points year-over-year [36] - Average fleet size for TTS was 7,495 trucks, down 7% year-over-year [38] - Dedicated revenue per truck per week increased 1.1%, growing 27% of the last 28 quarters [39] Company Strategy and Development Direction - The company is focused on driving growth in core business, operational excellence, and capital efficiency [20][24] - The strategy includes expanding TTS and logistics operating income margins, increasing one-way rates, and growing the dedicated fleet [20] - The company anticipates a challenging but improving environment as it enters 2025 [11][24] Management's Comments on Operating Environment and Future Outlook - Management noted that the freight recession has persisted, but there are signs of improvement, including higher spot rates and strong customer sentiment [8][10] - The company expects truckload fundamentals to gradually improve throughout 2025, with rates trending positively [25][26] - Management emphasized the importance of controlling costs and maintaining operational excellence to navigate the current environment [12][21] Other Important Information - The company achieved over $50 million in cost savings in 2024, offsetting rate and inflationary pressures [46] - Free cash flow for the full year was $95 million, up 44% year-over-year [50] - The company has a strong balance sheet with $41 million in cash and cash equivalents and $460 million in total liquidity [50] Q&A Session Summary Question: Insights on Mexico's tariff situation - Management indicated ongoing conversations with shippers regarding tariff threats, noting that there hasn't been significant change in shipping patterns [72][74] - The company's exposure to Mexico is slightly above 10% of total revenues, encompassing various segments [79][80] Question: Attractiveness of dedicated services - Management highlighted a robust pipeline for dedicated opportunities, emphasizing the importance of selecting true dedicated contracts that ensure high retention rates [90][91] Question: Pricing trends and rate increases - Management reported a year-over-year increase of just over 3% in one-way rates, indicating a positive trend in pricing discipline [96][97] - Customer sentiment is improving, with more willingness to engage in rate adjustments [100] Question: Margin trajectory and operating ratio - Management acknowledged that Q1 is typically a tougher quarter, with expectations of a 35% to 40% drop in operating income from Q4 to Q1 [142] - The focus remains on maintaining production improvements and enhancing service quality to support margin recovery [136][140]

Core Insights - Werner Enterprises reported a revenue of $754.68 million for the quarter ended December 2024, reflecting a year-over-year decline of 8.2% and an EPS of $0.08 compared to $0.39 a year ago, indicating significant underperformance against Wall Street expectations [1] - The reported revenue was 2.24% below the Zacks Consensus Estimate of $772 million, and the EPS was 61.90% lower than the consensus estimate of $0.21 [1] Financial Performance Metrics - The operating ratio for Truckload Transportation Services was reported at 97.8%, exceeding the average estimate of 94.5% based on three analysts [4] - Average trucks in service for Dedicated services were 4,836, surpassing the average estimate of 4,750 based on two analysts [4] - Year-over-year revenue per total mile for One-Way Truckload increased by 3.3%, compared to the average estimate of 2.4% [4] - Year-over-year total miles per truck per week for One-Way Truckload increased by 1.7%, below the estimated 3.3% [4] Revenue Breakdown - Revenues from Werner Logistics were $213.17 million, lower than the average estimate of $221.67 million, representing a year-over-year decline of 6.1% [4] - Truckload Transportation Services reported trucking fuel surcharge revenues of $57.57 million, below the average estimate of $64.69 million, marking a year-over-year decline of 32% [4] - Total revenues for Truckload Transportation Services were $527.30 million, slightly below the estimated $533 million, reflecting a year-over-year decrease of 9.1% [4] - Trucking revenues, net of fuel surcharge, were $458.70 million, close to the average estimate of $459.78 million, indicating a year-over-year decline of 5.9% [4] - Non-trucking and other revenues were $11.03 million, exceeding the estimate of $8.53 million, showing a year-over-year increase of 37.7% [4] - Other revenues were $17.34 million, below the estimate of $19.75 million, representing a year-over-year decline of 8.6% [4] - Dedicated trucking revenues, net of fuel surcharge, were $288.80 million, slightly above the estimate of $284.63 million, reflecting a year-over-year decline of 6.6% [4] - One-Way Truckload trucking revenues, net of fuel surcharge, were $169.90 million, below the estimate of $173.94 million, indicating a year-over-year decline of 4.6% [4]

4Q24 AND FULL YEAR 2024 EARNINGS PRESENTATION FEBRUARY 6, 2025 BUSINESS OVERVIEW DEREK LEATHERS 1 DISCLOSURE STATEMENT This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on information presently availab ...

分组1 - Werner Enterprises reported quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.21 per share, and down from $0.39 per share a year ago, representing an earnings surprise of -61.90% [1] - The company posted revenues of $754.68 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.24%, and down from $821.95 million year-over-year [2] - The stock has lost about 3% since the beginning of the year, while the S&P 500 has gained 3.1% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.18 on revenues of $777.71 million, and for the current fiscal year, it is $1.31 on revenues of $3.27 billion [7] - The Zacks Industry Rank for Transportation - Truck is currently in the bottom 10% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Werner Enterprises (WERN) Q4 2024 Earnings Call February 06, 2025 05:00 PM ET Company Participants Chris Neil - Senior Vice President of Pricing and Strategic PlanningDerek Leathers - Chairman & CEOChris Wikoff - Executive VP, Treasurer & CFOAndrew Cox - Research AssociateJoe Enderlin - Senior Research AssociateKen Hoexter - Managing DirectorRavi Shanker - Managing Director Conference Call Participants Scott Group - MD & Senior AnalystChristian Wetherbee - Senior AnalystBrian Ossenbeck - MD - Senior Analyst ...

Financial Performance - Total revenues for Q4 2024 were $754.7 million, down 8% from $821.9 million in Q4 2023[3] - Operating income decreased to $13.4 million, a decline of 65% year-over-year, with an operating margin of 1.8%, down 280 basis points[4] - Net income attributable to Werner was $11.9 million, a decrease of 50%, with diluted EPS of $0.19, down 48%[9] - Adjusted operating income for the year was $73.7 million, down 61% from the previous year, with an adjusted operating margin of 2.4%, down 340 basis points[3] - Total operating revenues (GAAP) for the year ended December 31, 2024, were $3,030,258 million, a decrease from $3,283,499 million in 2023[51] - For the full year 2024, operating revenues totaled $831.337 million, down from $910.433 million in 2023, a decrease of about 8.7%[53] Segment Performance - Truckload Transportation Services (TTS) revenues were $527.3 million, down 9% year-over-year, primarily due to a $19 million unfavorable claims development[19] - Logistics revenues decreased by $13.8 million, or 6%, totaling $213.2 million, with an operating income of $1.2 million, down 73%[20] - Revenues for Truckload Transportation Services decreased to $2,138,293 thousand in 2024 from $2,310,810 thousand in 2023, a decline of about 7.4%[43] - Operating income for Truckload Transportation Services dropped to $75,166 thousand in 2024, down from $169,330 thousand in 2023, a decrease of approximately 55.7%[43] Cash Flow and Capital Expenditures - Cash flow from operations in Q4 2024 was $71.0 million, a decrease of 40% compared to $118.3 million in Q4 2023[25] - Net capital expenditures in Q4 2024 were $28.8 million, down 17% from $34.5 million in Q4 2023[26] - The 2025 guidance for net capital expenditures is projected to be between $185 million and $235 million, down from $240 million to $260 million in 2024[30] Assets and Liabilities - Total assets decreased to $3,052,237 thousand in 2024 from $3,157,936 thousand in 2023, a decline of approximately 3.3%[38] - Total current assets fell to $541,773 thousand in 2024, down from $634,628 thousand in 2023, a reduction of approximately 14.6%[38] - Total liabilities decreased to $1,558,361 thousand in 2024 from $1,590,990 thousand in 2023, a decline of approximately 2%[38] Operational Metrics - Average revenues per truck per week for TTS increased by 2.5%, despite a reduction in average trucks in service by 8.2% year-over-year[19] - Average trucks in service for Truckload Transportation Services decreased by 8.2% to 7,495 in 2024 from 8,168 in 2023[46] - The company expects TTS truck count growth of 1% to 5% in 2025, compared to a decline of 7% in 2024[30] Non-GAAP Measures - Non-GAAP adjusted operating income for Q4 2024 was $12,247 million, representing a margin of 1.6%, compared to $39,206 million and 4.8% in Q4 2023[51] - Non-GAAP adjusted operating revenues, net of fuel surcharge, for Q4 2024 were $697,114 million, compared to $737,270 million in Q4 2023[52] - The non-GAAP adjusted operating margin for the Truckload Transportation Services segment was 2.8% in Q4 2024, compared to 6.4% in Q4 2023[52] - Non-GAAP adjusted net income attributable to Werner for the year ended December 31, 2024, was $122,721 million, with an adjusted diluted EPS of $1.93[51] Other Notable Items - The company reported gains on strategic investments of $8.7 million, or $0.10 per share, compared to losses of $0.3 million in Q4 2023[8] - The effective income tax rate decreased to 7.3% from 23.1% in Q4 2023 due to discrete return-to-provision adjustments[7] - The company recorded a net pre-tax gain of $7.0 million from the sale of three parcels of real estate during 2024, which is considered an unusual and infrequent item[56] - Management believes that excluding certain non-GAAP adjustments provides a more useful comparison of performance from period to period[53]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Werner Enterprises due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected on February 6, 2025, with a consensus estimate of $0.21 per share, reflecting a -46.2% year-over-year change. Revenues are projected at $772 million, down 6.1% from the previous year [3][4]. Estimate Revisions - The consensus EPS estimate has been revised down by 12.7% over the last 30 days, indicating a reassessment by analysts [4]. The Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.37% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading indicates a likely earnings beat, particularly when combined with a strong Zacks Rank. However, Werner currently holds a Zacks Rank of 5, complicating predictions of an earnings beat [8][11]. Historical Performance - In the last reported quarter, Werner was expected to post earnings of $0.22 per share but only achieved $0.15, resulting in a -31.82% surprise. The company has not beaten consensus EPS estimates in the last four quarters [12][13]. Conclusion - While the potential for an earnings beat exists, Werner does not appear to be a compelling candidate for such an outcome. Investors should consider other factors when making decisions regarding this stock ahead of the earnings release [14][16].

Core Viewpoint - Werner Enterprises has experienced an 8.5% increase in share price over the past month, outperforming the S&P 500, but recent earnings reports indicate potential challenges ahead [1]. Financial Performance - Q3 earnings were reported at 15 cents per share, missing the Zacks Consensus Estimate of 22 cents, and reflecting a 64.3% decline year-over-year [2]. - Total revenues for Q3 were $745.7 million, falling short of the Zacks Consensus Estimate of $787.5 million, and down 8.8% year-over-year, driven by a 9% decrease in Truckload Transportation Services (TTS) revenues and a 10% decline in Logistics revenues [2]. - Adjusted operating income decreased by 48% year-over-year to $21.6 million, with an adjusted operating margin of 2.9%, down 220 basis points from the previous year [3]. Segmental Results - TTS segment revenues fell 9% year-over-year to $522.8 million, with adjusted operating income down 41% to $24.5 million, and an adjusted operating margin of 4.7%, declining 260 basis points [4]. - Logistics revenues totaled $206.8 million, down 10% year-over-year, with adjusted operating income falling 75% to $804 million, and an adjusted operating margin of 0.4%, down 100 basis points [5]. Liquidity and Capital Expenditure - As of September 30, 2024, cash and cash equivalents were $54.66 million, down from $70.44 million in the prior quarter, while long-term debt increased to $690 million from $660 million [6]. - The company generated $61 million in cash from operations in Q3 2024, with net capital expenditure amounting to $87.9 million [6]. Share Repurchase and Outlook - No shares were repurchased during Q3 2024, with 3.9 million shares remaining under the repurchase authorization as of September 30, 2024 [7]. - For 2024, Werner anticipates TTS truck growth to decline by 6-8%, with net capital expenditure estimated between $240-$260 million [8]. - The company projects dedicated revenues per truck per week growth to rise from breakeven to 3% in 2024, and one-way Truckload revenues per total mile to improve from breakeven to 3% [8]. Estimates and Market Position - Estimates for Werner have trended downward, with a consensus estimate shift of -43.56% [11][12]. - The company currently holds a subpar Growth Score of D and a Momentum Score of F, with an aggregate VGM Score of D [13]. - The stock has a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [14]. Industry Comparison - In comparison, Old Dominion Freight Line, a peer in the Zacks Transportation - Truck industry, has gained 10% over the past month, reporting revenues of $1.47 billion, a year-over-year change of -3% [15]. - Old Dominion's EPS for the last quarter was $1.43, down from $1.55 a year ago, and it is expected to post earnings of $1.18 per share for the current quarter, reflecting a year-over-year change of -19.7% [16].