NASDAQ$WERN

Werner Enterprises Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Werner's financial performance declined due to challenging freight conditions and pricing pressure, but Dedicated business remained resilient and Logistics volume grew.

Werner Enterprises reported a decrease in total revenues, operating income, and EPS for the fourth quarter of 2023 compared to the prior year. The decline was attributed to challenging freight conditions and pricing pressure. However, the Dedicated business showed resilience, and Logistics volume experienced growth.

  • Total revenues decreased by 5% to $821.9 million.
  • Operating income decreased by 57% to $37.9 million.
  • Diluted EPS decreased by 61% to $0.37.
  • Logistics revenues grew by 6%.

Headline financials

Total Revenue

$822M

Previous: $861M-4.6%
EPS (adj)

$0.39

Previous: $0.99-60.6%
TTS Operating Margin

5.9%

No prior period
Logistics Operating Margin

2.0%

No prior period
Average Segment Trucks in Service

8.2K

No prior period
TTS Average Revenue per Truck per Week

$4.59K

No prior period
Dedicated Average Trucks in Service

5.2K

No prior period
Dedicated Average Revenue per Truck per Week

$4.54K

No prior period
One-Way Truckload Avg Rev/Mile YOY Change

-8.6%

No prior period
One-Way Truckload Avg Empty Miles

14.9%

No prior period
Capital Expenditures

$68.7M

Previous: $127M-46.1%
Net Income

$23.6M

Previous: $60.2M-60.8%
Operating Income

$37.9M

Previous: $88.4M-57.1%
Gross Profit

$69.4M

Previous: $143M-51.3%
Stock-Based Comp

$3.27M

Previous: $3.37M-2.8%

Revenue & EPS history

Werner · Revenue · Quarterly

$822M

Q4 2023-4.6%vs Q4 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 provided guidance for 2024, including TTS truck count, net capital expenditures, Dedicated RPTPW growth, and One-Way Truckload RPTM growth.

Tailwinds

  • Dedicated unit trucks at quarter end totaled 5,265, or 66% of the total TTS segment fleet.
  • Dedicated revenue per truck per week increased 0.9% year over year.
  • Pipeline opportunities remain healthy and client retention remains strong.
  • One-Way Truckload customer freight demand during fourth quarter 2023 was stable with slightly better-than-expected peak volumes.
  • One-Way rate per mile decline was more favorable than industry benchmarks.

Headwinds

  • Freight conditions remained challenging in the fourth quarter with ongoing pricing pressure.
  • The effective income tax rate during the quarter was 23.1%, compared to 24.7% in fourth quarter 2022.
  • Dedicated experienced net reduction in average trucks, down 3.3% year over year and down 0.3% sequentially.
  • One-Way rate per mile was down 8.6% and fleet size was smaller year over year (down 11.0%).
  • Logistics operating income decreased $5.3 million and adjusted operating income decreased $5.0 million in fourth quarter 2023, due to a competitive freight and rate market.

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 2023

Historical avgQ4 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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