A month has passed by for the reason that final earnings report for Werner Enterprises (WERN). Shares have added about 8.5% in that time-frame, outperforming the S&P 500.
Will the current optimistic pattern proceed main as much as its subsequent earnings launch, or is Werner due for a pullback? Earlier than we dive into how buyers and analysts have reacted as of late, let’s take a fast take a look at its most up-to-date earnings report to be able to get a greater deal with on the vital catalysts.
Werner’s Q3 Earnings Lag Estimates
Quarterly earnings of 15 cents per share lagged the Zacks Consensus Estimate of twenty-two cents and declined 64.3% on a year-over-year foundation.
Whole revenues of $745.7 million lagged the Zacks Consensus Estimate of $787.5 million and dipped 8.8% on a year-over-year foundation as a result of a $49.4 million, or 9% lower in Truckload Transportation Companies (TTS) revenues and a $23.5 million, or 10% decline in Logistics revenues.
Adjusted working revenue of $21.6 million decreased 48% 12 months over 12 months. Adjusted working margin of two.9% declined 220 foundation factors from the year-ago reported quarter.
Segmental Outcomes
Revenues within the TTS section fell 9% on a year-over-year foundation to $522.8 million as a result of decrease gasoline surcharge revenues. Adjusted working revenue of $24.5 million fell 41% 12 months over 12 months owing to decrease features on the sale of property and gear (down 69%) and a smaller fleet dimension. Adjusted working margin of 4.7% declined 260 foundation factors.
Logistics’ revenues totaled $206.8 million, down 10% 12 months over 12 months. Adjusted working revenue of $804 million fell 75% from the year-ago reported quarter. Adjusted working margin decreased 100 foundation factors 12 months over 12 months to 0.4%.
Liquidity
As of Sept. 30, 2024, Werner had money and money equivalents of $54.66 million in contrast with $70.44 million on the prior-quarter finish. Lengthy-term debt (internet of present portion) totaled $690 million on the finish of the reported quarter in contrast with $660 million on the prior-quarter finish.
The corporate generated $61 million of money from operations in third-quarter 2024. Internet capital expenditure amounted to$87.9 million.
WERN didn’t repurchase any shares throughout the third quarter of 2024. As of Sept. 30, 2024, WERN had 3.9 million shares remaining underneath its share repurchase authorization.
Outlook
For 2024, Werner anticipates TTS truck development to say no within the vary of 8-6% (prior view: decline 6-3%).
Internet capital expenditure is now estimated to be within the vary of $240-$260 million (prior view: $225-$275 million).
Beneath the TTS steerage, WERN tasks devoted revenues per truck per week development to rise from breakeven to three% in 2024. One-way Truckload revenues per whole mile are predicted to enhance from breakeven to three% (prior view: decline from breakeven to three%).
Werner expects the common truck age to be two years for 2024, whereas the trailer age is forecasted to be 5 years.
Full-year 2024 tax charge is anticipated to be within the vary of 25.5%-26.5% (prior view: 24.5%-25.5%).
How Have Estimates Been Transferring Since Then?
It seems, estimates revision have trended downward throughout the previous month.
The consensus estimate has shifted -43.56% as a result of these modifications.
VGM Scores
At the moment, Werner has a subpar Progress Rating of D, although it’s lagging a bit on the Momentum Rating entrance with an F. Nevertheless, the inventory was allotted a grade of C on the worth facet, placing it within the center 20% for this funding technique.
Total, the inventory has an combination VGM Rating of D. For those who aren’t targeted on one technique, this rating is the one you need to be enthusiastic about.
Outlook
Estimates have been broadly trending downward for the inventory, and the magnitude of those revisions signifies a downward shift. It is no shock Werner has a Zacks Rank #4 (Promote). We anticipate a beneath common return from the inventory within the subsequent few months.
Efficiency of an Trade Participant
Werner belongs to the Zacks Transportation – Truck business. One other inventory from the identical business, Previous Dominion Freight Line (ODFL), has gained 10% over the previous month. Greater than a month has handed for the reason that firm reported outcomes for the quarter ended September 2024.
Previous Dominion reported revenues of $1.47 billion within the final reported quarter, representing a year-over-year change of -3%. EPS of $1.43 for a similar interval compares with $1.55 a 12 months in the past.
Previous Dominion is anticipated to put up earnings of $1.18 per share for the present quarter, representing a year-over-year change of -19.7%. During the last 30 days, the Zacks Consensus Estimate has modified -1.6%.
The general course and magnitude of estimate revisions translate right into a Zacks Rank #4 (Promote) for Previous Dominion. Additionally, the inventory has a VGM Rating of D.
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Werner Enterprises, Inc. (WERN) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
