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Jun 30, 2022
Werner Q2 2022 Earnings Report
Werner's second quarter results showed progress but fell short of expectations, achieving eighth consecutive quarter of record EPS despite high insurance and claims expense.
Key Takeaways
Werner Enterprises reported a 29% increase in total revenues to $836.3 million, driven by growth in both Truckload Transportation Services and Logistics revenues. However, operating income decreased by 3% to $74.9 million, and diluted EPS increased by 6% to $1.12. The results were impacted by unusually high insurance and claims expenses.
Total revenues increased 29% to $836.3 million.
Operating income decreased 3% to $74.9 million.
Diluted EPS increased 6% to $1.12.
Logistics team revenues and operating income expanded.
Revenue by Segment
Forward Guidance
Werner provided updated guidance for 2022, including TTS truck growth from BoY to EoY of 2% to 5%, net capital expenditures of $275M to $325M, Dedicated RPTPW growth of 6% to 8%, and One-Way Truckload RPTM growth of 2% to 5% for Q3 2022 vs. Q3 2021.
Positive Outlook
- Expect continued strong dedicated rate levels.
- Growth focused on Dedicated.
- Effective income tax rate assumption of 24.5% to 25.5%.
- Truck age of 2.2 years.
- Trailer age of 4.8 years.
Challenges Ahead
- Subject to availability of drivers and new equipment.
- Moderating OWT freight market.
- Tougher YOY RPTM comps.
- Lapping ECM acquisition.
- Declining spot rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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