Werner Q4 Earnings & Revenues Miss Estimates, Decrease Y/Y

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].