Loading...
•
Jun 30, 2020
Werner Q2 2020 Earnings Report
Werner reported strong results despite challenges in a COVID-19 economy.
Key Takeaways
Werner Enterprises reported a decrease in total revenues by 9% to $569.0 million for Q2 2020 compared to Q2 2019. Operating income decreased by 10% to $52.8 million, while diluted EPS decreased by 9% to $0.56. The company proactively managed its fleet and cost structure, which helped to minimize the impact of a softer freight market.
Total revenues decreased by 9% to $569.0 million.
Operating income decreased by 10% to $52.8 million.
Diluted EPS decreased by 9% to $0.56.
Freight demand in One-Way Truckload and Logistics was lower than the same period a year ago.
Revenue by Segment
Forward Guidance
Werner provided updated 2020 guidance, including expectations for TTS truck growth, capital expenditures, and one-way truckload revenue per total mile (RPTM). They also noted an expected increase in liability insurance premiums.
Positive Outlook
- Dedicated fleet startups expected in 2H20.
- OEM new truck delivery delays in 1H20 expected to catch up in 2H20.
- Used truck demand slightly improving.
- Assumes no round 2 of stay-at-home order programs in 2H20.
- Truck and trailer age remains low.
Challenges Ahead
- Social distancing continues at driver schools.
- Difficult to predict gains on sales of equipment in 2H20.
- Expect the premiums for liability insurance policies to increase by at least $7 million on an annual basis.
- Responsible for the first $10.0 million per claim under the new insurance policies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...