We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Werner's (WERN) Q3 Earnings Miss Estimates, Increase Y/Y
Read MoreHide Full Article
Werner Enterprises Inc. (WERN - Free Report) reported third-quarter 2021 earnings (excluding 15 cents from non-recurring items) of 79 cents per share, missing the Zacks Consensus Estimate of 95 cents. The bottom line surged 14.5% on a year-over-year basis.
Total revenues of $702.9 million also missed the Zacks Consensus Estimate of $705 million. The top line increased 19.1% on a year-over-year basis. The uptick can be primarily attributed to higher revenues in the Truckload Transportation Services and Logistics segments.
Operating income (adjusted) came in at $73.9 million in the reported quarter, up 15% year over year. Adjusted operating margin fell 40 basis points (bps) to 10.5%. Operating expenses rose 19.6% to $631.6 million.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
Revenues in the Truckload Transportation Services (“TTS”) segment increased 15% on a year-over-year basis to $527.7 million. The upside can be attributed to a 65% rise in fuel surcharge revenues. Adjusted operating income was flat at $65 million. Adjusted operating margin dropped 180 bps to 12.4%. Adjusted operating ratio (operating expenses, as a percentage of revenues) deteriorated 180 bps to 87.6%. Lower the value of the metric, the better.
The Logistics segment’s revenues totaled $158 million, up 35% year over year. The upside can be attributed to a 63% rise in truckload logistics revenues (arising from a 33% rally in revenues per shipment and a 23% increase in shipments). The segment reported operating income of $7.65 million. Operating margin was 4.8%. The Other segment accounted for the rest of the top line.
Liquidity
As of Sep 30, 2021, Werner, carrying a Zacks Rank #3 (Hold), had cash and cash equivalents of $45.43 million compared with $29.33 million at 2020 end. Long-term debt (net of current portion) totaled $343.7 million at the end of the third quarter compared with $175 million at the end of 2020. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Outlook
Werner now anticipates TTS truck growth of 3-5% year over year in 2021 (previous expectation: 1-4% growth year over year).
Net capital expenditures are estimated in the band of $250-$275 million (previous guidance: $275-$300 million).
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 2.2 years and 4.4 years (previous outlook: two years and low-to-mid “four” years), respectively.
Under the TTS guidance, fourth-quarter One-Way Truckload revenues per total mile are now expected to increase 17-19% from fourth-quarter 2020 levels.
The company expects gains on sales of equipment in the range of $10-$12 million for the fourth quarter of 2021.
Dedicated RPTPW (Net of fuel surcharge revenues) growth for the fourth quarter is expected to be 1-2%.
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 third-quarter 2021 results.
Delta reported third-quarter earnings (excluding $1.59 from non-recurring items) of 30 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. Revenues of $9,154 million beat the Zacks Consensus Estimate of $8,370.6 million.
J.B. Hunt reported third-quarter earnings of $1.88 per share, surpassing the Zacks Consensus Estimate of $1.77. Total operating revenues of $3144.8 million outperformed the Zacks Consensus Estimate of $3002.1 million.
Kansas City Southern reported third-quarter earnings (excluding 31 cents from non-recurring items) of $2.02 per share, missing the Zacks Consensus Estimate of $2.07. Quarterly revenues of $744 million surpassed the Zacks Consensus Estimate of $725.9 million.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Werner's (WERN) Q3 Earnings Miss Estimates, Increase Y/Y
Werner Enterprises Inc. (WERN - Free Report) reported third-quarter 2021 earnings (excluding 15 cents from non-recurring items) of 79 cents per share, missing the Zacks Consensus Estimate of 95 cents. The bottom line surged 14.5% on a year-over-year basis.
Total revenues of $702.9 million also missed the Zacks Consensus Estimate of $705 million. The top line increased 19.1% on a year-over-year basis. The uptick can be primarily attributed to higher revenues in the Truckload Transportation Services and Logistics segments.
Operating income (adjusted) came in at $73.9 million in the reported quarter, up 15% year over year. Adjusted operating margin fell 40 basis points (bps) to 10.5%. Operating expenses rose 19.6% to $631.6 million.
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 Truckload Transportation Services (“TTS”) segment increased 15% on a year-over-year basis to $527.7 million. The upside can be attributed to a 65% rise in fuel surcharge revenues. Adjusted operating income was flat at $65 million. Adjusted operating margin dropped 180 bps to 12.4%. Adjusted operating ratio (operating expenses, as a percentage of revenues) deteriorated 180 bps to 87.6%. Lower the value of the metric, the better.
The Logistics segment’s revenues totaled $158 million, up 35% year over year. The upside can be attributed to a 63% rise in truckload logistics revenues (arising from a 33% rally in revenues per shipment and a 23% increase in shipments). The segment reported operating income of $7.65 million. Operating margin was 4.8%. The Other segment accounted for the rest of the top line.
Liquidity
As of Sep 30, 2021, Werner, carrying a Zacks Rank #3 (Hold), had cash and cash equivalents of $45.43 million compared with $29.33 million at 2020 end. Long-term debt (net of current portion) totaled $343.7 million at the end of the third quarter compared with $175 million at the end of 2020. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Outlook
Werner now anticipates TTS truck growth of 3-5% year over year in 2021 (previous expectation: 1-4% growth year over year).
Net capital expenditures are estimated in the band of $250-$275 million (previous guidance: $275-$300 million).
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 2.2 years and 4.4 years (previous outlook: two years and low-to-mid “four” years), respectively.
Under the TTS guidance, fourth-quarter One-Way Truckload revenues per total mile are now expected to increase 17-19% from fourth-quarter 2020 levels.
The company expects gains on sales of equipment in the range of $10-$12 million for the fourth quarter of 2021.
Dedicated RPTPW (Net of fuel surcharge revenues) growth for the fourth quarter is expected to be 1-2%.
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 third-quarter 2021 results.
Delta reported third-quarter earnings (excluding $1.59 from non-recurring items) of 30 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. Revenues of $9,154 million beat the Zacks Consensus Estimate of $8,370.6 million.
J.B. Hunt reported third-quarter earnings of $1.88 per share, surpassing the Zacks Consensus Estimate of $1.77. Total operating revenues of $3144.8 million outperformed the Zacks Consensus Estimate of $3002.1 million.
Kansas City Southern reported third-quarter earnings (excluding 31 cents from non-recurring items) of $2.02 per share, missing the Zacks Consensus Estimate of $2.07. Quarterly revenues of $744 million surpassed the Zacks Consensus Estimate of $725.9 million.