NASDAQ$WERN

Werner Enterprises Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Werner reported strong results despite challenges in a COVID-19 economy.

Werner Enterprises reported a decrease in total revenues by 9% to $569.0 million for Q2 2020 compared to Q2 2019. Operating income decreased by 10% to $52.8 million, while diluted EPS decreased by 9% to $0.56. The company proactively managed its fleet and cost structure, which helped to minimize the impact of a softer freight market.

  • Total revenues decreased by 9% to $569.0 million.
  • Operating income decreased by 10% to $52.8 million.
  • Diluted EPS decreased by 9% to $0.56.
  • Freight demand in One-Way Truckload and Logistics was lower than the same period a year ago.

Headline financials

Total Revenue

$569M

Previous: $628M-9.3%
EPS (adj)

$0.62

Previous: $0.63-1.6%
Operating Margin

9.3%

No prior period
Net Capital Expenditures

$88.8M

No prior period
Capital Expenditures

-$170M

Previous: -$239M+28.9%
Free Cash Flow

-$131M

Previous: -$196M+33.1%
Net Income

$39.1M

Previous: $43.3M-9.7%
Operating Income

$52.8M

Previous: $58.4M-9.6%
Gross Profit

$442M

Previous: $474M-6.7%
Cash & Equivalents

$65.4M

Previous: $46.4M+40.9%
Total Assets

$2.08B

Previous: $2.13B-2.3%
Stock-Based Comp

$1.14M

Previous: $2.31M-50.8%

Revenue & EPS history

Werner · Revenue · Quarterly

$569M

Q2 2020-9.3%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Werner · $555M total across 2 segments · Q2 2020

  • Truckload Transportation Services
    $445M
  • Werner Logistics
    $110M

Forward guidance

Werner provided updated 2020 guidance, including expectations for TTS truck growth, capital expenditures, and one-way truckload revenue per total mile (RPTM). They also noted an expected increase in liability insurance premiums.

Tailwinds

  • Dedicated fleet startups expected in 2H20.
  • OEM new truck delivery delays in 1H20 expected to catch up in 2H20.
  • Used truck demand slightly improving.
  • Assumes no round 2 of stay-at-home order programs in 2H20.
  • Truck and trailer age remains low.

Headwinds

  • Social distancing continues at driver schools.
  • Difficult to predict gains on sales of equipment in 2H20.
  • Expect the premiums for liability insurance policies to increase by at least $7 million on an annual basis.
  • Responsible for the first $10.0 million per claim under the new insurance policies.
  • One-Way Truckload RPTM Guidance 2H20 vs 2H19 (1)% to 2%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.2%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+0.3%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+10.1%

Q1 2017

Best reaction

-9.7%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.8%-0.1%+20.7%
Q4 2025-8.2%-9.0%-18.7%
Q3 2025+1.3%+4.9%+0.7%
Q1 2025-1.4%-7.1%-6.4%
Q4 2024-0.6%-0.4%-7.1%
Q3 2024-2.3%-1.7%+6.0%
Q2 2024-0.3%-5.2%-6.9%
Q1 2024+1.3%+4.6%+5.7%
Q4 2023+5.9%+4.8%-1.5%
Q3 2023-0.9%+2.4%+12.7%
Q2 2023-1.3%-1.9%-10.5%
Q1 2023-1.2%-1.1%-3.2%
Q4 2022-1.3%-4.1%-4.0%
Q3 2022-6.6%-0.2%+11.2%
Q2 2022-0.8%+0.2%-5.9%
Q1 2022+7.2%+7.3%+4.0%
Q4 2021-1.4%-1.9%+0.2%
Q3 2021-2.8%-1.9%-2.6%
Q2 2021+2.4%+3.1%+6.9%
Q1 2021+4.7%+5.9%+7.7%
Q4 2020+2.2%+5.9%+14.6%
Q3 2020-3.3%-3.8%+1.1%
Q2 2020+4.5%+2.7%+9.8%
Q1 2020-2.0%-2.4%+8.6%
Q4 2019+5.5%+2.7%-11.4%
Q3 2019+3.0%+2.9%-3.3%
Q2 2019-1.2%+0.5%-8.6%
Q1 2019-1.1%-7.3%-18.7%
Q4 2018+2.2%+0.4%+0.5%
Q3 2018+0.4%+1.6%+0.3%
Q2 2018-8.1%-7.6%-5.6%
Q1 2018-5.1%-8.6%+0.0%
Q4 2017-5.0%-6.9%-13.1%
Q3 2017+0.7%-0.3%-4.8%
Q2 2017+5.4%+1.4%+6.3%
Q1 2017+10.1%+12.0%+4.9%
Q4 2016+2.0%+1.3%+3.6%
Q3 2016+1.3%+5.7%+18.9%
Q2 2016+5.2%+2.5%-0.5%
Q1 2016-9.7%
Q4 2015+4.2%
Q3 2015+2.5%
Q2 2015+5.4%
Q1 2015-3.6%
Q4 2014-5.2%
Q3 2014+5.1%
Q2 2014-2.3%
Q1 2014+2.0%
Q4 2013+1.1%
Q3 2013+0.6%
Q2 2013-5.2%
Q1 2013+0.5%
Q4 2012-2.7%
Q3 2012-0.3%
Q2 2012-0.2%
Q1 2012+1.0%
Q4 2011-0.6%
Q3 2011+2.5%
Q2 2011+2.5%
Q1 2010+1.1%
Q1 2011+2.9%
Q4 2010+1.6%
Q4 2008+1.6%
Q3 2010+2.1%
Q3 2009+2.1%
Q2 2009-3.8%
Q2 2010-3.8%
Q4 2009-3.8%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro