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Werner's (WERN) Q1 Earnings Top Estimates, Increase 70% Y/Y
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Werner Enterprises Inc. (WERN - Free Report) reported first-quarter 2021 earnings of 68 cents per share, which surpassed the Zacks Consensus Estimate of 63 cents. Moreover, the bottom line surged 70% year over year. Reduced operating expenses aided the bottom line.
Total revenues of $616.4 million outperformed the Zacks Consensus Estimate of $616.1 million. The top line inched up 4% on a year-over-year basis. The uptick can be primarily attributed to Logistics revenues growth.
Operating income (adjusted) came in at $62.7 million in the reported quarter, up 68% year over year. Moreover, adjusted operating margin increased 390 basis points (bps) to 10.2%. Operating expenses dropped 1.4% to $553.97 million.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
Truckload Transportation Services (“TTS”) segment’s revenues declined marginally on a year-over-year basis to $462.94 million. The downside was caused by 7% fall in fuel surcharge revenues and 0.9% decline in average trucks in service. Adjusted operating income surged 67% to $58.88 million. Additionally, adjusted operating margin expanded 510 bps to 12.7%. Adjusted operating ratio (operating expenses, as a percentage of revenues) improved 510 bps to 87.3%. Notably, lower the value of the metric, the better.
Werner Logistics segment’s revenues totaled $137.85 million, up 23% year over year due to 23% rise in intermodal logistics volume. The segment reported operating income of $4.57 million, skyrocketing more than 100% from the year-ago quarter’s levels. Further, operating margin was 3.3%, up 230 bps from first-quarter 2020 levels. The Other segment accounted for the rest of the top line.
Liquidity
As of Mar 31, 20201 Werner, carrying a Zacks Rank #3 (Hold), had cash and cash equivalents of $83.13 million compared with $29.33 million at 2020 end. Long-term debt (net of current portion) totaled $175 million at the end of the first quarter, flat compared with2020-end reported figure. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
2021 Outlook
Werner still anticipates TTS truck growth of 1-3% year over year in 2021. The company continues to expect modest fleet growth for full year 2021.
Net capital expenditures are estimated in the band of $275-$300 million (unchanged from the previous guidance).
Effective income tax rate is still expected in the range of 24.5-25.5% Truck age and Trailer age is expected to be at two years and low-to-mid “four” years, respectively.
Q2 Outlook
The company expects gains on sales of equipment in the range of $7-$10 million in the second quarter of 2021.
Under the TTS guidance, One-Way Truckload revenues per total mile are expected to increase in the 13-16% band during the second quarter of 2021 from second-quarter 2020 levels.
Sectorial Snapshot
Within the broader Transportation sector, Delta Air Lines (DAL - Free Report) , J.B. Hunt Transport Services (JBHT - Free Report) and Kansas City Southern recently reported first-quarter 2021 results.
Delta, carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $1.70 from non-recurring items) of $3.55 per share. The figure was wider than the Zacks Consensus Estimate of a loss of $3.08. Total revenues of $4,150 million topped the Zacks Consensus Estimate of $3,821.3 million.
J.B. Hunt, a Zacks #3 ranked player, reported earnings of $1.37 per share. The figure beat the Zacks Consensus Estimate of $1.18. Total operating revenues of $2,618.1 million also surpassed the Zacks Consensus Estimate of $2,486.9 million.
Kansas City Southern, carrying a Zacks Rank of 3, reported earnings (excluding 23 cents from non-recurring items) of $1.91 per share. The figure missed the Zacks Consensus Estimate of $2. Quarterly revenues of $706 million lagged the Zacks Consensus Estimate of $714.3 million.
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Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Werner's (WERN) Q1 Earnings Top Estimates, Increase 70% Y/Y
Werner Enterprises Inc. (WERN - Free Report) reported first-quarter 2021 earnings of 68 cents per share, which surpassed the Zacks Consensus Estimate of 63 cents. Moreover, the bottom line surged 70% year over year. Reduced operating expenses aided the bottom line.
Total revenues of $616.4 million outperformed the Zacks Consensus Estimate of $616.1 million. The top line inched up 4% on a year-over-year basis. The uptick can be primarily attributed to Logistics revenues growth.
Operating income (adjusted) came in at $62.7 million in the reported quarter, up 68% year over year. Moreover, adjusted operating margin increased 390 basis points (bps) to 10.2%. Operating expenses dropped 1.4% to $553.97 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 declined marginally on a year-over-year basis to $462.94 million. The downside was caused by 7% fall in fuel surcharge revenues and 0.9% decline in average trucks in service. Adjusted operating income surged 67% to $58.88 million. Additionally, adjusted operating margin expanded 510 bps to 12.7%. Adjusted operating ratio (operating expenses, as a percentage of revenues) improved 510 bps to 87.3%. Notably, lower the value of the metric, the better.
Werner Logistics segment’s revenues totaled $137.85 million, up 23% year over year due to 23% rise in intermodal logistics volume. The segment reported operating income of $4.57 million, skyrocketing more than 100% from the year-ago quarter’s levels. Further, operating margin was 3.3%, up 230 bps from first-quarter 2020 levels. The Other segment accounted for the rest of the top line.
Liquidity
As of Mar 31, 20201 Werner, carrying a Zacks Rank #3 (Hold), had cash and cash equivalents of $83.13 million compared with $29.33 million at 2020 end. Long-term debt (net of current portion) totaled $175 million at the end of the first quarter, flat compared with2020-end reported figure. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
2021 Outlook
Werner still anticipates TTS truck growth of 1-3% year over year in 2021. The company continues to expect modest fleet growth for full year 2021.
Net capital expenditures are estimated in the band of $275-$300 million (unchanged from the previous guidance).
Effective income tax rate is still expected in the range of 24.5-25.5%
Truck age and Trailer age is expected to be at two years and low-to-mid “four” years, respectively.
Q2 Outlook
The company expects gains on sales of equipment in the range of $7-$10 million in the second quarter of 2021.
Under the TTS guidance, One-Way Truckload revenues per total mile are expected to increase in the 13-16% band during the second quarter of 2021 from second-quarter 2020 levels.
Sectorial Snapshot
Within the broader Transportation sector, Delta Air Lines (DAL - Free Report) , J.B. Hunt Transport Services (JBHT - Free Report) and Kansas City Southern recently reported first-quarter 2021 results.
Delta, carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $1.70 from non-recurring items) of $3.55 per share. The figure was wider than the Zacks Consensus Estimate of a loss of $3.08. Total revenues of $4,150 million topped the Zacks Consensus Estimate of $3,821.3 million.
J.B. Hunt, a Zacks #3 ranked player, reported earnings of $1.37 per share. The figure beat the Zacks Consensus Estimate of $1.18. Total operating revenues of $2,618.1 million also surpassed the Zacks Consensus Estimate of $2,486.9 million.
Kansas City Southern, carrying a Zacks Rank of 3, reported earnings (excluding 23 cents from non-recurring items) of $1.91 per share. The figure missed the Zacks Consensus Estimate of $2. Quarterly revenues of $706 million lagged the Zacks Consensus Estimate of $714.3 million.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>