NASDAQ$WERN

Werner Enterprises Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Werner Enterprises reported good financial results despite a softening freight market.

Werner Enterprises reported an 18% increase in total revenues, driven by growth in Truckload Transportation Services and Logistics revenues. Operating income increased by 7%, and diluted EPS decreased by 8%.

  • Total revenues increased by 18% to $827.6 million.
  • Operating income rose by 7% to $76.3 million.
  • Diluted EPS decreased by 8% to $0.86.
  • Truckload Transportation Services and Logistics revenues drove the overall revenue growth.

Headline financials

Total Revenue

$828M

Previous: $703M+17.7%
EPS (adj)

$0.90

Previous: $0.79+13.9%
Operating Margin

9.2%

Previous: 10.1%-8.9%
Capital Expenditures

-$380M

Previous: -$295M-28.6%
Free Cash Flow

-$325M

Previous: -$232M-40.2%
Net Income

$55.1M

Previous: $63.8M-13.7%
Operating Income

$76.3M

Previous: $71.3M+6.9%
Gross Profit

$584M

Previous: $525M+11.2%
Cash & Equivalents

$126M

Previous: $45.4M+176.7%
Total Assets

$2.86B

Previous: $2.48B+15.3%
Stock-Based Comp

$3.04M

Previous: $2.75M+10.4%

Revenue & EPS history

Werner · Revenue · Quarterly

$828M

Q3 2022+17.7%vs Q3 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Werner · $809M total across 2 segments · Q3 2022

  • Truckload Transportation Services
    $622M+17.8%
  • Werner Logistics
    $187M+18.5%

Forward guidance

Werner expects a more subdued peak freight market in the fourth quarter compared to the previous year.

Tailwinds

  • Dedicated RPTPW growth is expected to be 6% to 8% in 4Q22 compared to 4Q21.
  • Continued strong rate levels are expected to offset inflationary costs.
  • TTS truck growth from BoY to EoY is expected to be 3% to 5% annually.
  • Baylor trucks acquired on October 1, 2022, are included in the TTS truck growth guidance.
  • Truck age is expected to be 2.3 years.

Headwinds

  • One-Way Truckload RPTM growth is expected to be -3% to 0% in 4Q22 compared to 4Q21.
  • The OWT freight market is moderating.
  • There are tough YOY RPTM comps.
  • There are much fewer premium pricing opportunities in 4Q22.
  • Trailer age is expected to be 5.0 years.

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 Q3 2022

Historical avgQ3 2022

+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%

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