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Dec 31, 2019
Werner Q4 2019 Earnings Report
Werner's Q4 2019 performance reflected a decrease in total revenues and operating income due to challenging market conditions, but EPS remained strong.
Key Takeaways
Werner Enterprises reported a decrease in total revenues by 4% to $621.8 million and a 12% decrease in operating income to $65.7 million compared to Q4 2018. Diluted EPS decreased by 9% to $0.70. The company faced a challenging operating environment, but delivered good results through effective cost management and a balanced revenue model.
Total revenues decreased by 4% to $621.8 million.
Operating income decreased by 12% to $65.7 million.
Diluted EPS decreased by 9% to $0.70.
Freight volumes were comparable to the prior year, but rates were softer.
Revenue by Segment
Forward Guidance
Werner provided guidance for 2020, including TTS truck growth, gains on sales of equipment, and net capital expenditures. They also provided first half 2020 guidance for One-Way Truckload revenues per total mile.
Positive Outlook
- TTS truck growth from year-end 2019 is expected to be between (3)% and 1%.
- Gains on sales of equipment are expected to be between $6 million and $12 million.
- The company intends to maintain the average age of their truck and trailer fleet at or near current levels.
- The effective tax rate is assumed to be between 25% and 26%.
- Net capital expenditures are projected to be between $260 million and $300 million.
Challenges Ahead
- One-Way Truckload revenues per total mile for the first half of 2020 are expected to decrease by (5%) to (7%) compared to the first half of 2019.
- Revenues per total mile (RPTM) comparisons are expected to remain difficult in the first half of 2020.
- Gains on sales of equipment in 2020 are expected to continue to moderate due to the softer used equipment market and lower trailer sales.
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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