NASDAQ$WERN

Werner Enterprises Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Werner's performance was impacted by a challenging economic backdrop and soft freight market, but the Logistics segment grew revenues for the 12th-straight quarter.

Werner Enterprises reported a 1% decrease in total revenues to $817.7 million, with operating income down 50% to $37.9 million and diluted EPS down 57% to $0.37. The Logistics segment experienced revenue growth, while the Truckload Transportation Services segment saw a decline due to lower fuel surcharge revenues and softer freight demand.

  • Total revenues decreased by 1% to $817.7 million.
  • Operating income decreased by 50% to $37.9 million.
  • Diluted EPS decreased by 57% to $0.37.
  • Logistics segment revenues grew by 23%, while Truckload Transportation Services revenues decreased.

Headline financials

Total Revenue

$818M

Previous: $828M-1.2%
EPS (adj)

$0.42

Previous: $0.90-53.3%
Operating Margin

4.6%

Previous: 9.2%-50.0%
Capital Expenditures

-$530M

Previous: -$380M-39.5%
Free Cash Flow

-$506M

Previous: -$325M-55.9%
Net Income

$23.7M

Previous: $55.1M-56.9%
Operating Income

$37.9M

Previous: $76.3M-50.3%
Gross Profit

$606M

Previous: $584M+3.6%
Cash & Equivalents

$42.8M

Previous: $126M-66.0%
Total Assets

$3.19B

Previous: $2.86B+11.7%
Stock-Based Comp

$2.38M

Previous: $3.04M-21.6%

Revenue & EPS history

Werner · Revenue · Quarterly

$818M

Q3 2023-1.2%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Werner · $802M total across 2 segments · Q3 2023

  • Truckload Transportation Services
    $572M-8.0%
  • Werner Logistics
    $230M+23.0%

Forward guidance

Werner updated its 2023 guidance, adjusting fleet size to adapt to the softer freight market and increasing the pace of refreshing the fleet to reduce average equipment age.

Tailwinds

  • Dedicated RPTPW growth is expected to be between 0% and 3%.
  • Greater pace of refreshing the fleet to reduce average equipment age.
  • One fewer working day in 3Q23 vs. 3Q22 negatively impacted year-over-year comparison
  • Stable OWT freight conditions in 4Q, but minimal impact from peak season
  • Expect full year 2023 effective tax rate in the range of 24.0% to 25.0%.

Headwinds

  • TTS truck count from BoY to EoY is expected to be between -5% and -3%.
  • One-Way Truckload RPTM growth is expected to be between -9% and -7% for 4Q23 vs. 4Q22.
  • Adjusting One-Way fleet size to adapt to softer freight market
  • Minimal impact from peak season
  • Net capital expenditures are expected to be between $425M and $450M.

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 2023

Historical avgQ3 2023

+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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