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Werner's (WERN) Q4 Earnings & Revenues Beat, Shares Gain
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Werner Enterprises Inc. (WERN - Free Report) reported better-than-expected earnings and revenues for the fourth quarter of 2021. Both earnings and revenues also increased significantly year over year. Following this strong performance, shares of WERN gained 3.2% in after-hours trading on Feb 3.
Werner’s fourth-quarter earnings (excluding 2 cents from non-recurring items) of $1.13 per share surpassed the Zacks Consensus Estimate of 96 cents. The bottom line rose 27% on a year-over-year basis.
Total revenues of $765.2 million also outperformed the Zacks Consensus Estimate of $725.1 million. The top line increased 23.4% on a year-over-year basis, primarily on higher revenues in the Truckload Transportation Services and Logistics segments.
Operating income (adjusted) came in at $101.1 million in the reported quarter, up 22% year over year. Adjusted operating margin fell 10 basis points (bps) to 13.2%. Operating expenses rose 23.7% to $666.7 million.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
Revenues in the Truckload Transportation Services (TTS) segment increased 19% on a year-over-year basis to $563.2 million. The upside can be attributed to an 87% rise in fuel surcharge revenues. Adjusted operating income increased 13% to $90 million. Adjusted operating margin dropped 80 bps to 16%. Adjusted operating ratio (operating expenses as a percentage of revenues) deteriorated 80 bps to 84%. Lower the value of the metric, the better.
The Logistics segment’s revenues totaled $185 million, up 42% year over year. The upside can be attributed to a 58% rise in truckload logistics revenues (led by a 29% increase in revenues per shipment and a 23% jump in shipments). The segment reported an operating income of $11.7 million, up more than 300% year over year. Operating margin was 6.3%, reflecting an improvement of 430 bps. The Other segment accounted for the rest of the top line.
Liquidity
As of Dec 31, 2021, Werner, currently carrying a Zacks Rank #3 (Hold), had cash and cash equivalents of $54.20 million compared with $29.33 million at 2020 end. Long-term debt (net of current portion) totaled $422.50 million at the end of the fourth quarter compared with $175 million at the end of 2020.
Outlook
Werner anticipates TTS truck growth of 2-5% for 2022 from the year-ago reported figure. Net capital expenditures are estimated in the band of $275-$325 million.
Under the TTS guidance, WERN estimates Dedicated revenue per truck per week to increase 3-5% in 2022 owing to expectations of strong rates. One-way Truckload revenues per total mile are predicted to climb 16-19% in the first half of 2022 from the comparable period in 2021 owing to increased contractual rates and higher spot rates as well as fleet mix changes.
Werner expects truck age to be 2.2 years for 2022 (commensurate with 2021), while 2022 trailer age is forecast to be 4.8 years compared with 4.5 years at the end of 2021.
CSX, currently carrying a Zacks Rank #3, reported fourth-quarter 2021 earnings of 42 cents per share, which surpassed the Zacks Consensus Estimate by a penny. The bottom line improved in double digits year over year owing to higher revenues.
CSX’s total revenues of $3,427 million outperformed the Zacks Consensus Estimate of $3296 million. The top line augmented 21.3% year over year owing to growth across all its businesses as well as revenues from Quality Carriers, which the company acquired in July 2021.
Canadian National, presently carrying a Zacks Rank of 3, reported fourth-quarter 2021 earnings (excluding 2 cents from non-recurring items) of $1.36 per share (C$1.71), which surpassed the Zacks Consensus Estimate of $1.21. The bottom line increased in double digits year over year on lower costs.
Canadian National’s quarterly revenues of $2,977.4 million (C$3,753 million) topped the Zacks Consensus Estimate of $2,917.4 million. The top line improved year over year, driven by higher freight rates and fuel surcharges.
GATX, sporting a Zacks Rank #1 (Strong Buy) at present, reported fourth-quarter 2021 earnings (excluding 11 cents from non-recurring items) of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.07. The bottom line surged more than 200% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
GATX’s total revenues of $321 million increased 5.3% year over year, mainly on a 5.2% rise in lease revenues, which came in at $288.4 million. Lease revenues contributed 89.8% to the top line.
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Werner's (WERN) Q4 Earnings & Revenues Beat, Shares Gain
Werner Enterprises Inc. (WERN - Free Report) reported better-than-expected earnings and revenues for the fourth quarter of 2021. Both earnings and revenues also increased significantly year over year. Following this strong performance, shares of WERN gained 3.2% in after-hours trading on Feb 3.
Werner’s fourth-quarter earnings (excluding 2 cents from non-recurring items) of $1.13 per share surpassed the Zacks Consensus Estimate of 96 cents. The bottom line rose 27% on a year-over-year basis.
Total revenues of $765.2 million also outperformed the Zacks Consensus Estimate of $725.1 million. The top line increased 23.4% on a year-over-year basis, primarily on higher revenues in the Truckload Transportation Services and Logistics segments.
Operating income (adjusted) came in at $101.1 million in the reported quarter, up 22% year over year. Adjusted operating margin fell 10 basis points (bps) to 13.2%. Operating expenses rose 23.7% to $666.7 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 19% on a year-over-year basis to $563.2 million. The upside can be attributed to an 87% rise in fuel surcharge revenues. Adjusted operating income increased 13% to $90 million. Adjusted operating margin dropped 80 bps to 16%. Adjusted operating ratio (operating expenses as a percentage of revenues) deteriorated 80 bps to 84%. Lower the value of the metric, the better.
The Logistics segment’s revenues totaled $185 million, up 42% year over year. The upside can be attributed to a 58% rise in truckload logistics revenues (led by a 29% increase in revenues per shipment and a 23% jump in shipments). The segment reported an operating income of $11.7 million, up more than 300% year over year. Operating margin was 6.3%, reflecting an improvement of 430 bps. The Other segment accounted for the rest of the top line.
Liquidity
As of Dec 31, 2021, Werner, currently carrying a Zacks Rank #3 (Hold), had cash and cash equivalents of $54.20 million compared with $29.33 million at 2020 end. Long-term debt (net of current portion) totaled $422.50 million at the end of the fourth quarter compared with $175 million at the end of 2020.
Outlook
Werner anticipates TTS truck growth of 2-5% for 2022 from the year-ago reported figure. Net capital expenditures are estimated in the band of $275-$325 million.
Under the TTS guidance, WERN estimates Dedicated revenue per truck per week to increase 3-5% in 2022 owing to expectations of strong rates. One-way Truckload revenues per total mile are predicted to climb 16-19% in the first half of 2022 from the comparable period in 2021 owing to increased contractual rates and higher spot rates as well as fleet mix changes.
Werner expects truck age to be 2.2 years for 2022 (commensurate with 2021), while 2022 trailer age is forecast to be 4.8 years compared with 4.5 years at the end of 2021.
Sectorial Snapshots
Within the broader Transportation sector, CSX Corporation (CSX - Free Report) , Canadian National Railway (CNI - Free Report) and GATX Corporation (GATX - Free Report) recently reported fourth-quarter 2021 results.
CSX, currently carrying a Zacks Rank #3, reported fourth-quarter 2021 earnings of 42 cents per share, which surpassed the Zacks Consensus Estimate by a penny. The bottom line improved in double digits year over year owing to higher revenues.
CSX’s total revenues of $3,427 million outperformed the Zacks Consensus Estimate of $3296 million. The top line augmented 21.3% year over year owing to growth across all its businesses as well as revenues from Quality Carriers, which the company acquired in July 2021.
Canadian National, presently carrying a Zacks Rank of 3, reported fourth-quarter 2021 earnings (excluding 2 cents from non-recurring items) of $1.36 per share (C$1.71), which surpassed the Zacks Consensus Estimate of $1.21. The bottom line increased in double digits year over year on lower costs.
Canadian National’s quarterly revenues of $2,977.4 million (C$3,753 million) topped the Zacks Consensus Estimate of $2,917.4 million. The top line improved year over year, driven by higher freight rates and fuel surcharges.
GATX, sporting a Zacks Rank #1 (Strong Buy) at present, reported fourth-quarter 2021 earnings (excluding 11 cents from non-recurring items) of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.07. The bottom line surged more than 200% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
GATX’s total revenues of $321 million increased 5.3% year over year, mainly on a 5.2% rise in lease revenues, which came in at $288.4 million. Lease revenues contributed 89.8% to the top line.