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Sep 30, 2023
Werner Q3 2023 Earnings Report
Werner's performance was impacted by a challenging economic backdrop and soft freight market, but the Logistics segment grew revenues for the 12th-straight quarter.
Key Takeaways
Werner Enterprises reported a 1% decrease in total revenues to $817.7 million, with operating income down 50% to $37.9 million and diluted EPS down 57% to $0.37. The Logistics segment experienced revenue growth, while the Truckload Transportation Services segment saw a decline due to lower fuel surcharge revenues and softer freight demand.
Total revenues decreased by 1% to $817.7 million.
Operating income decreased by 50% to $37.9 million.
Diluted EPS decreased by 57% to $0.37.
Logistics segment revenues grew by 23%, while Truckload Transportation Services revenues decreased.
Revenue by Segment
Forward Guidance
Werner updated its 2023 guidance, adjusting fleet size to adapt to the softer freight market and increasing the pace of refreshing the fleet to reduce average equipment age.
Positive Outlook
- Dedicated RPTPW growth is expected to be between 0% and 3%.
- Greater pace of refreshing the fleet to reduce average equipment age.
- One fewer working day in 3Q23 vs. 3Q22 negatively impacted year-over-year comparison
- Stable OWT freight conditions in 4Q, but minimal impact from peak season
- Expect full year 2023 effective tax rate in the range of 24.0% to 25.0%.
Challenges Ahead
- TTS truck count from BoY to EoY is expected to be between -5% and -3%.
- One-Way Truckload RPTM growth is expected to be between -9% and -7% for 4Q23 vs. 4Q22.
- Adjusting One-Way fleet size to adapt to softer freight market
- Minimal impact from peak season
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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