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Dec 31, 2022
Werner Q4 2022 Earnings Report
Werner's financial performance declined due to macroeconomic conditions and a soft freight market, but strategic acquisitions and a resilient business model contributed to strong results.
Key Takeaways
Werner Enterprises reported a 13% increase in total revenues to $861.5 million for Q4 2022, driven by growth in both Truckload Transportation Services and Logistics revenues. However, operating income decreased by 10% to $88.4 million, and diluted EPS decreased by 18% to $0.94. The company closed on two additive acquisitions during the quarter.
Total revenues increased by 13% to $861.5 million.
Operating income decreased by 10% to $88.4 million.
Diluted EPS decreased by 18% to $0.94.
Two acquisitions, ReedTMS Logistics and Baylor Trucking, were completed during the quarter.
Forward Guidance
Werner provided guidance for 2023, including TTS truck growth of 1% to 4% and net capital expenditures of $350M to $400M.
Positive Outlook
- Majority of 2023 growth planned for Dedicated and back half weighted
- Expect low single digit increase YoY with difficult comp
- Softening OWT freight market earlier in the year then strengthening in 2H23
- Effective income tax rate of 24.0% to 25.0% in 2023 compared to 4Q22 of 24.7%.
- Average truck age of 2.2 years and trailer age of 5.0 years as of 12/31/23, compared to 2.3 years and 5.0 years as of 12/31/22.
Challenges Ahead
- Subject to availability of new equipment
- Softening OWT freight market earlier in the year then strengthening in 2H23
- Majority of 2023 growth planned for Dedicated and back half weighted
- Subject to availability of new equipment
Historical Earnings Impact
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Avg. Return Before/After Earnings
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