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 ...

Werner Enterprises (WERN) came out with quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -31.82%. A quarter ago, it was expected that this transportation company would post earnings of $0.23 per share when it actually produced earnings of $0.17, delivering a surprise of -26.09%. Over the last four ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Werner Enterprises (WERN) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Octo ...