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]

Financial Data and Key Metrics Changes - In Q4 2024, revenues totaled $755 million, down 8% year-over-year [19] - Adjusted EPS was $0.08, a decrease of $0.31 compared to the previous year [19] - Adjusted operating margin was 1.6%, a decrease of 69% year-over-year [19] Business Line Data and Key Metrics Changes - Truckload Transportation Services (TTS) revenue for the quarter was $527 million, down 9% [20] - TTS adjusted operating income was $14.6 million, a 60.1% decrease year-over-year [20] - Logistics revenue was $213 million, representing 28% of total revenues, down 6% year-over-year but up 3% sequentially [27] Market Data and Key Metrics Changes - Spot rates have improved, reaching a two-year high, with tender rejection rates remaining seasonally elevated [7] - The logistics division reported improved adjusted operating income, marking the best quarter of the year [12] - The company expects truckload fundamentals to gradually improve throughout 2025 [16] Company Strategy and Development Direction - The company is focused on driving growth in core business, operational excellence, and capital efficiency [13][15] - Investments have been made in maintaining a modern fleet and advancing technology for better decision-making and operational efficiencies [9] - The company aims to improve TTS margins and return to double-digit operating margins over time [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the freight recession has persisted but positive signs are emerging, indicating an improving environment [6][7] - The company anticipates a challenging but improving environment as 2025 begins, with expectations for better rates and demand [7][16] - Management emphasized the importance of controlling costs and focusing on operational excellence to navigate the current market [14][40] Other Important Information - The company achieved over $50 million in cost savings in 2024, with a total of nearly $100 million over two years [29] - The effective tax rate for Q4 was 7%, with a full-year rate of 21% [38] - The company ended the year with $41 million in cash and cash equivalents, and total liquidity of $460 million [30] Q&A Session Summary Question: What actions are being taken regarding tariff threats in Mexico? - Management indicated ongoing conversations with shippers in Mexico, noting that there hasn't been significant change in shipping patterns despite tariff rhetoric [45][46] Question: How is the company balancing fleet growth with rate insulation in Dedicated services? - Management highlighted a robust pipeline for dedicated opportunities and emphasized the importance of selecting true dedicated opportunities that ensure high retention rates [52][54] Question: What is the outlook for insurance costs and margin trajectory? - Management acknowledged the outlier nature of recent insurance costs and indicated that claims are trending down, with expectations for improved margins moving forward [79][82]

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].

Werner Enterprises (WERN) is facing significant freight market challenges. Escalating operating expenses are adversely affecting the company’s bottom line, making it an unattractive choice for investors’ portfolios.Let’s delve deeper.WERN: Key Risks to WatchSouthward Earnings Estimate Revision:The Zacks Consensus Estimate for current-year earnings has moved 25.53% south in the past 60 days. For the next year, the consensus mark for earnings has been revised 16% downward in the same time frame. The unfavorab ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [Mark one] ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 0-14690 | --- | --- | |-----------------------------------------------------------------------------------------------|------------------------ ...

Shares of Werner Enterprises, Inc. (WERN) have lost 2% since its third-quarter 2024 earnings release on Oct. 29, 2024.  The downside was owing to the disappointing third-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.Quarterlyearnings of 15 cents per share lagged the Zacks Consensus Estimate of 22 cents and declined 64.3% on a year-over-year basis.Find the latest EPS estimates and surprises on ZacksEarnings Calendar.Total revenues of $745.7 million lagged the Zac ...

Financial Data and Key Metrics Changes - Revenues for Q3 2024 totaled $746 million, a decrease of 9% compared to the prior year [36] - Adjusted EPS was $0.15, down $0.27 primarily due to a softer used equipment market and higher interest expenses [36] - Adjusted operating margin was 2.9%, a decrease of 220 basis points year-over-year [36] Business Line Data and Key Metrics Changes - Truckload Transportation Services (TTS) revenue was $523 million, down 9% year-over-year, with adjusted operating income declining 41% to $24.5 million [37] - Dedicated revenue net of fuel was $285 million, down 7% year-over-year, while Dedicated revenue per truck per week increased 1.7% [43] - Logistics revenue was $207 million, representing 28% of total revenues, down 10% year-over-year [48] Market Data and Key Metrics Changes - One-Way revenue per total mile increased 0.3% in Q3, marking the first year-over-year increase in seven quarters [16] - Average truck count in TTS declined 9% year-over-year, while revenue per truck per week increased 3.5% [42] - Intermodal revenues increased 7% year-over-year due to more shipments, despite a decrease in revenue per shipment [49] Company Strategy and Development Direction - The company is focused on driving growth in core business, operational excellence, and capital efficiency as strategic priorities for 2024 [25] - Continued investment in technology, particularly the EDGE TMS platform, is expected to enhance operational efficiency and decision-making [28] - The company aims to maintain a strong customer retention rate of over 90% in its Dedicated business, leveraging its competitive advantages [22] Management's Comments on Operating Environment and Future Outlook - Management noted that while the operating environment remains challenging, there are positive signs of market transition and improvements in certain business areas [11] - The company remains disciplined in executing its strategy and is optimistic about future growth as demand returns [62] - Management highlighted the importance of controlling costs and improving operational margins despite external pressures [77] Other Important Information - The company reported $40 million in savings through cost-saving initiatives during Q3 [33] - Total liquidity at the end of the quarter was $434 million, including cash and availability on the revolver [56] - The average age of the truck fleet was 2.0 years, positioning the company well for future growth and compliance with emission regulations [61] Q&A Session Summary Question: Can you elaborate on the health insurance claims and cost headwinds? - Management indicated that health insurance claims were unusually elevated during the quarter, impacting EPS by about $0.05 [66] Question: What are the expectations for rate increases in the upcoming bid season? - Management stated that it is too early to predict the magnitude of rate increases for 2025, but there are signs of tightening in the market [68] Question: How should margins be expected to change from Q3 to Q4? - Management expects moderate margin improvements, despite challenges from health insurance costs and macroeconomic factors [77] Question: What is the outlook for the Dedicated fleet in Q4? - Management indicated that the Dedicated fleet might decrease due to strategic exits, but there are signs of capacity being added back in some areas [73] Question: How does the company plan to manage fleet age and emissions regulations? - Management expressed confidence in their fleet's age and their ability to navigate upcoming emission regulations without significant CapEx [105]

Werner Enterprises (WERN) reported $745.7 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 8.8%. EPS of $0.15 for the same period compares to $0.42 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $787.48 million, representing a surprise of -5.31%. The company delivered an EPS surprise of -31.82%, with the consensus EPS estimate being $0.22. While investors closely watch year-over-year changes in headline numbers -- revenue and ear ...