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Werner (WERN) Misses Q1 Earnings and Revenue Estimates
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Werner Enterprises, Inc. (WERN - Free Report) first-quarter 2024 earnings of 14 cents per share lagged the Zacks Consensus Estimate of 28 cents and declined 77% on a year-over-year basis.
Total revenues of $769.08 million lagged the Zacks Consensus Estimate of $795.1 million and dipped 8% on a year-over-year basisdue to a $37.2 million decrease in Truckload Transportation Services (TTS) revenues and a decline in Logistics revenues of $26.2 million.
Adjusted operating income of $18.6 million decreased 68% year over year. Adjusted operating margin of 2.4% declined 450 basis points from the year-ago reported quarter.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
Revenues in the TTS segment fell 6% on a year-over-year basis to $551.12 million due to lower fuel surcharge revenues. Adjusted operating income of $22.69 million fell 58% year over year owing to lower gains on the sale of property and equipment, lower revenue per total mile, net of fuel surcharge, in One-Way Truckload and overall smaller fleet size. Adjusted operating margin decreased 500 basis points to 4.1%.
Logistics’ revenues totaled $202.48 million, down 11% year over year. Adjusted operating loss was $1.18 million against the adjusted operating income of $6.35 million in the year-ago quarter. Adjusted operating margin decreased 340 basis points year over year.
Liquidity
As of Mar 31, 2024, Werner had cash and cash equivalents of $60.33 million compared with $61.72 million at the fourth-quarter end. Long-term debt (net of current portion) totaled $596.25 million at the end of the reported quarter compared with $646.25 million at the prior-quarter end.
The company generated $88.58 million of cash from operations in first-quarter 2024. Net capital expenditure amounted to $19.03 million.
During the reported quarter, WERN repurchased 0.2 million shares for a total cost of $6.5 million. As of Mar 31, 2024, WERN had 2.1 million shares remaining under its share repurchase authorization.
Outlook
For 2024, Werner now anticipates TTS truck growth to decline 6-3% (prior view: between [3%] and breakeven).
Net capital expenditure is now estimated to be in the range of $250-$300 million (prior view: $260-$310 million).
Under the TTS guidance, WERN projects dedicated revenues per truck per week growth to rise from breakeven to 3% in 2024. One-way Truckload revenues per total mile are predicted to decline 6-3%.
Werner expects the average truck age to be two years for 2024, while the trailer age is forecasted to be five years.
Full-year 2024 tax rate is anticipated to be in the range of 24.5%-25.5%.
Delta Air Lines (DAL - Free Report) reported first-quarter 2024 earnings (excluding 39 cents from non-recurring items) of 45 cents per share, which comfortably beat the Zacks Consensus Estimate of 36 cents. Earnings increased 80% on a year-over-year basis.
Revenues of $13.75 billion surpassed the Zacks Consensus Estimate of $12.84 billion and increased 7.75% on a year-over-year basis, driven by strong air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $12.56 billion, up 6% year over year.
United Airlines Holdings, Inc.(UAL - Free Report) reported first-quarter 2024 loss per share (excluding 23 cents from non-recurring items) of 15 cents, which was narrower than the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago reported quarter, UAL reported a loss of 63 cents per share.
Operating revenues of $12,539 million beat the Zacks Consensus Estimate of $12,428.4 million. The top line increased 9.7% year over year due to upbeat air-travel demand. This was driven by a 10.1% rise in passenger revenues (accounting for 90.2% of the top line) to $11,313 million. Almost 39,325 passengers traveled on UAL flights in the first quarter, up 6.8% year over year.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2024 earnings of $1.22 per share missed the Zacks Consensus Estimate of $1.53 and declined 35.5% year over year.
JBHT’s total operating revenues of $2,944 million missed the Zacks Consensus Estimate of $3,117.1 million and fell 8.8% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 7% year over year. The downfall was owing to a 9% decrease in segment gross revenue per load in both Intermodal (JBI) and Truckload (JBT), 22% fewer loads in Integrated Capacity Solution (ICS), and a modest decline in average trucks and productivity in Dedicated Contract Services (DCS). Revenue declines in JBI, ICS, JBT and DCS were partially offset by Final Mile Services (FMS) revenue growth of 2%, primarily driven by new contracts implemented over the past year.
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Werner (WERN) Misses Q1 Earnings and Revenue Estimates
Werner Enterprises, Inc. (WERN - Free Report) first-quarter 2024 earnings of 14 cents per share lagged the Zacks Consensus Estimate of 28 cents and declined 77% on a year-over-year basis.
Total revenues of $769.08 million lagged the Zacks Consensus Estimate of $795.1 million and dipped 8% on a year-over-year basisdue to a $37.2 million decrease in Truckload Transportation Services (TTS) revenues and a decline in Logistics revenues of $26.2 million.
Adjusted operating income of $18.6 million decreased 68% year over year. Adjusted operating margin of 2.4% declined 450 basis points from the year-ago reported quarter.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
Werner Enterprises, Inc. price-consensus-eps-surprise-chart | Werner Enterprises, Inc. Quote
Segmental Results
Revenues in the TTS segment fell 6% on a year-over-year basis to $551.12 million due to lower fuel surcharge revenues. Adjusted operating income of $22.69 million fell 58% year over year owing to lower gains on the sale of property and equipment, lower revenue per total mile, net of fuel surcharge, in One-Way Truckload and overall smaller fleet size. Adjusted operating margin decreased 500 basis points to 4.1%.
Logistics’ revenues totaled $202.48 million, down 11% year over year. Adjusted operating loss was $1.18 million against the adjusted operating income of $6.35 million in the year-ago quarter. Adjusted operating margin decreased 340 basis points year over year.
Liquidity
As of Mar 31, 2024, Werner had cash and cash equivalents of $60.33 million compared with $61.72 million at the fourth-quarter end. Long-term debt (net of current portion) totaled $596.25 million at the end of the reported quarter compared with $646.25 million at the prior-quarter end.
The company generated $88.58 million of cash from operations in first-quarter 2024. Net capital expenditure amounted to $19.03 million.
During the reported quarter, WERN repurchased 0.2 million shares for a total cost of $6.5 million. As of Mar 31, 2024, WERN had 2.1 million shares remaining under its share repurchase authorization.
Outlook
For 2024, Werner now anticipates TTS truck growth to decline 6-3% (prior view: between [3%] and breakeven).
Net capital expenditure is now estimated to be in the range of $250-$300 million (prior view: $260-$310 million).
Under the TTS guidance, WERN projects dedicated revenues per truck per week growth to rise from breakeven to 3% in 2024. One-way Truckload revenues per total mile are predicted to decline 6-3%.
Werner expects the average truck age to be two years for 2024, while the trailer age is forecasted to be five years.
Full-year 2024 tax rate is anticipated to be in the range of 24.5%-25.5%.
Werner carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2024 earnings (excluding 39 cents from non-recurring items) of 45 cents per share, which comfortably beat the Zacks Consensus Estimate of 36 cents. Earnings increased 80% on a year-over-year basis.
Revenues of $13.75 billion surpassed the Zacks Consensus Estimate of $12.84 billion and increased 7.75% on a year-over-year basis, driven by strong air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $12.56 billion, up 6% year over year.
United Airlines Holdings, Inc.(UAL - Free Report) reported first-quarter 2024 loss per share (excluding 23 cents from non-recurring items) of 15 cents, which was narrower than the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago reported quarter, UAL reported a loss of 63 cents per share.
Operating revenues of $12,539 million beat the Zacks Consensus Estimate of $12,428.4 million. The top line increased 9.7% year over year due to upbeat air-travel demand. This was driven by a 10.1% rise in passenger revenues (accounting for 90.2% of the top line) to $11,313 million. Almost 39,325 passengers traveled on UAL flights in the first quarter, up 6.8% year over year.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2024 earnings of $1.22 per share missed the Zacks Consensus Estimate of $1.53 and declined 35.5% year over year.
JBHT’s total operating revenues of $2,944 million missed the Zacks Consensus Estimate of $3,117.1 million and fell 8.8% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 7% year over year. The downfall was owing to a 9% decrease in segment gross revenue per load in both Intermodal (JBI) and Truckload (JBT), 22% fewer loads in Integrated Capacity Solution (ICS), and a modest decline in average trucks and productivity in Dedicated Contract Services (DCS). Revenue declines in JBI, ICS, JBT and DCS were partially offset by Final Mile Services (FMS) revenue growth of 2%, primarily driven by new contracts implemented over the past year.