NASDAQ$WERN

Werner Enterprises Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Werner's Q4 2019 performance reflected a decrease in total revenues and operating income due to challenging market conditions, but EPS remained strong.

Werner Enterprises reported a decrease in total revenues by 4% to $621.8 million and a 12% decrease in operating income to $65.7 million compared to Q4 2018. Diluted EPS decreased by 9% to $0.70. The company faced a challenging operating environment, but delivered good results through effective cost management and a balanced revenue model.

  • Total revenues decreased by 4% to $621.8 million.
  • Operating income decreased by 12% to $65.7 million.
  • Diluted EPS decreased by 9% to $0.70.
  • Freight volumes were comparable to the prior year, but rates were softer.

Headline financials

Total Revenue

$622M

Previous: $646M-3.8%
EPS (adj)

$0.67

Previous: $0.75-10.7%
Average Segment Trucks in Service

8.0K

Previous: 7.8K+3.3%
Capital Expenditures

$45.5M

Previous: $107M-57.6%
Free Cash Flow

$48.9M

Previous: $8.33M+487.1%
Net Income

$48.5M

Previous: $54.6M-11.1%
Operating Income

$65.7M

Previous: $74.9M-12.4%
Gross Profit

$116M

Previous: $123M-5.5%
Cash & Equivalents

$26.4M

Previous: $33.9M-22.1%
Total Assets

$2.14B

Previous: $2.08B+2.9%
Stock-Based Comp

$1.73M

Previous: $1.89M-8.3%

Revenue & EPS history

Werner · Revenue · Quarterly

$622M

Q4 2019-3.8%vs Q4 2018
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Werner · $607M total across 2 segments · Q4 2019

  • Truckload Transportation Services
    $487M-1.6%
  • Werner Logistics
    $120M-12.4%

Forward guidance

Werner provided guidance for 2020, including TTS truck growth, gains on sales of equipment, and net capital expenditures. They also provided first half 2020 guidance for One-Way Truckload revenues per total mile.

Tailwinds

  • TTS truck growth from year-end 2019 is expected to be between (3)% and 1%.
  • Gains on sales of equipment are expected to be between $6 million and $12 million.
  • The company intends to maintain the average age of their truck and trailer fleet at or near current levels.
  • The effective tax rate is assumed to be between 25% and 26%.
  • Net capital expenditures are projected to be between $260 million and $300 million.

Headwinds

  • One-Way Truckload revenues per total mile for the first half of 2020 are expected to decrease by (5%) to (7%) compared to the first half of 2019.
  • Revenues per total mile (RPTM) comparisons are expected to remain difficult in the first half of 2020.
  • Gains on sales of equipment in 2020 are expected to continue to moderate due to the softer used equipment market and lower trailer sales.
  • The company anticipates flat to slightly lower truck count in the first half of 2020 due to current market conditions.
  • Estimated first quarter 2020 interest expense to be slightly lower than fourth quarter 2019 of $2.2 million based on current debt levels and current interest rates (variable and fixed).

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 Q4 2019

Historical avgQ4 2019

+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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