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Werner Enterprises Inc. (WERN - Free Report) reported fourth-quarter 2020 earnings (excluding a penny from non-recurring items) of 89 cents per share, surpassing the Zacks Consensus Estimate of 78 cents. Moreover, the bottom line surged 32.8% year over year. Reduced operating expenses aided the bottom line.
Total revenues of $620.3 million outperformed the Zacks Consensus Estimate of $611.8 million. The top line was flat year over year, hurt by low fuel surcharge revenues.
Operating income (adjusted) came in at $82.71 million in the reported quarter, up 30% year over year. Moreover, adjusted operating margin improved 310 basis points (bps) to 13.3%. Operating expenses dipped 3.1% to $538.85 million.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
Truckload Transportation Services (“TTS”) segment’s revenues fell 2% year over year to $475.04 million. The downside can be attributed to 35% decrease in fuel surcharge revenues and 3.1% decline in average trucks in service. Adjusted operating income ascended 32% to $79.87 million. Additionally, adjusted operating margin expanded 440 bps to 16.8%. Adjusted operating ratio (operating expenses as a percentage of revenues) improved 440 bps to 83.2%. Notably, lower the value of the metric, the better.
Werner Logistics segment’s revenues totaled $130.11 million, up 8% year over year due to 21% rise in intermodal logistics volume. The segment reported operating income of $2.63 million, down 22% from the year-ago period. Further, operating margin was 2%, reflecting a decrease of 80 bps from the fourth quarter of 2019. The Other segment accounted for the rest of the top line.
Liquidity
As of Dec 31, 2020, Werner, carrying a Zacks Rank #3 (Hold), had cash and cash equivalents of $29.33 million compared with $26.42 million at 2019 end. Long-term debt (net of current portion) totaled $175 million at the end of the fourth quarter compared with $225 million at 2019 end. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
2021 Outlook
Werner anticipates TTS truck growth of 1-3% year over year in 2021. Additionally, it expects gains on sales of equipment to be in the range of $12 million-$15 million in the current year. Meanwhile, net capital expenditures are estimated in the band of $275 million-$300 million.
Sectorial Snapshot
Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Transportation sector.
United Airlines (UAL - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding 6 cents from non-recurring items) of $7 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $6.56. Meanwhile, operating revenues of $3,412 million lagged the Zacks Consensus Estimate of $3,420.4 million.
J.B. Hunt Transport Services (JBHT - Free Report) , carrying a Zacks Rank #3, reported earnings of $1.44 per share, beating the Zacks Consensus Estimate of $1.27. Total operating revenues of $2,737.7 million also surpassed the Zacks Consensus Estimate of $2,514.3 million.
Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. Total revenues of $3,973 million topped the Zacks Consensus Estimate of $3,754.5 million.
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Werner's (WERN) Q4 Earnings Beat Estimates, Increase Y/Y
Werner Enterprises Inc. (WERN - Free Report) reported fourth-quarter 2020 earnings (excluding a penny from non-recurring items) of 89 cents per share, surpassing the Zacks Consensus Estimate of 78 cents. Moreover, the bottom line surged 32.8% year over year. Reduced operating expenses aided the bottom line.
Total revenues of $620.3 million outperformed the Zacks Consensus Estimate of $611.8 million. The top line was flat year over year, hurt by low fuel surcharge revenues.
Operating income (adjusted) came in at $82.71 million in the reported quarter, up 30% year over year. Moreover, adjusted operating margin improved 310 basis points (bps) to 13.3%. Operating expenses dipped 3.1% to $538.85 million.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
Werner Enterprises, Inc. price-consensus-eps-surprise-chart | Werner Enterprises, Inc. Quote
Segmental Results
Truckload Transportation Services (“TTS”) segment’s revenues fell 2% year over year to $475.04 million. The downside can be attributed to 35% decrease in fuel surcharge revenues and 3.1% decline in average trucks in service. Adjusted operating income ascended 32% to $79.87 million. Additionally, adjusted operating margin expanded 440 bps to 16.8%. Adjusted operating ratio (operating expenses as a percentage of revenues) improved 440 bps to 83.2%. Notably, lower the value of the metric, the better.
Werner Logistics segment’s revenues totaled $130.11 million, up 8% year over year due to 21% rise in intermodal logistics volume. The segment reported operating income of $2.63 million, down 22% from the year-ago period. Further, operating margin was 2%, reflecting a decrease of 80 bps from the fourth quarter of 2019. The Other segment accounted for the rest of the top line.
Liquidity
As of Dec 31, 2020, Werner, carrying a Zacks Rank #3 (Hold), had cash and cash equivalents of $29.33 million compared with $26.42 million at 2019 end. Long-term debt (net of current portion) totaled $175 million at the end of the fourth quarter compared with $225 million at 2019 end. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
2021 Outlook
Werner anticipates TTS truck growth of 1-3% year over year in 2021. Additionally, it expects gains on sales of equipment to be in the range of $12 million-$15 million in the current year. Meanwhile, net capital expenditures are estimated in the band of $275 million-$300 million.
Sectorial Snapshot
Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Transportation sector.
United Airlines (UAL - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding 6 cents from non-recurring items) of $7 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $6.56. Meanwhile, operating revenues of $3,412 million lagged the Zacks Consensus Estimate of $3,420.4 million.
J.B. Hunt Transport Services (JBHT - Free Report) , carrying a Zacks Rank #3, reported earnings of $1.44 per share, beating the Zacks Consensus Estimate of $1.27. Total operating revenues of $2,737.7 million also surpassed the Zacks Consensus Estimate of $2,514.3 million.
Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. Total revenues of $3,973 million topped the Zacks Consensus Estimate of $3,754.5 million.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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