WERNER ENTERPRISES Reports Fourth Quarter Fiscal Year 2022 Earnings Results on December 31, 2022

Earnings Overview

On February 7, 2023, WERNER ENTERPRISES ($NASDAQ:WERN) reported their financial results for the fourth quarter of fiscal year 2022, ending on December 31, 2022. Total revenue for the quarter was USD 60.2 million, a decrease of 22.7% from the same quarter the previous year. Net income for the quarter stood at USD 861.5 million, an increase of 12.6% from the same quarter the prior year.

Transcripts Simplified

Werner Enterprises reported fourth quarter TTS revenues increased 13% and adjusted operating income decreased 8%. Sequentially, TTS adjusted operating income increased 9% quarter-over-quarter. TTS adjusted operating margin declined 240 basis points year-over-year. The largest per mile operating expense increases were supplies and maintenance at 18% and insurance and claims at 53%, while driver pay increased 4%. Werner incurred $11 million higher insurance and claims expense and $8.5 million lower workers’ compensation in salaries, wages and benefits expense. For insurance and claims, a limited number of prior year incidents have developed beyond what was expected.

For 2023, Werner expects annual equipment gains in the range of $30 million to $50 million. In fourth quarter, Werner Logistics revenues grew 15% due to eight weeks of ReedTMS, offset by less peak and transactional freight opportunities. Truckload Logistics revenues, including ReedTMS, increased 20%, driven by a 34% increase in shipments, partially offset by an 11% decrease in revenues per shipment caused by fewer premium pricing opportunities. Logistics shipments, excluding ReedTMS, were flat year-over-year and down 5% sequentially.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Werner Enterprises. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Werner Enterprises. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Werner Enterprises. More…

Key Ratios Snapshot

Some of the financial key ratios for Werner Enterprises are shown below. More…

Share Price

The company’s stock opened at $48.5 and closed at $49.1, up 1.3% from its previous closing price of $48.5. This increase in share value can be attributed to the positive results of the quarter and the company’s outlook for the following year. Looking ahead, WERNER ENTERPRISES provided guidance for Fiscal Year 2023 that suggests profitability and revenue growth.

In addition to this, WERNER ENTERPRISES also indicated that they anticipate an additional $50 million in cash flows from their operations over the next fiscal year, which will allow them to further strengthen their financial position. With their strong financial position and continued growth in both revenue and profitability, investors should feel confident in the company’s future success. Live Quote…

Analysis

At GoodWhale, we make it easy to analyze WERNER ENTERPRISES’s financials. When you register on our website, you’ll be able to look into their financial health and the areas with the potential for risks. According to our Risk Rating, WERNER ENTERPRISES is a low risk investment. So if you’re looking for a stable and safe investment, WERNER ENTERPRISES can be a great choice. We provide information on their financials and business aspects, so you can make more informed decisions. With GoodWhale, you can easily analyze WERNER ENTERPRISES’s financials and make the best investment decisions for yourself. More…

Peers

The trucking industry is extremely competitive. Companies are always vying for new customers and new contracts. Werner Enterprises Inc is no different. It competes against some of the largest trucking companies in the world, including Knight-Swift Transportation Holdings Inc, ArcBest Corp, and XPO Logistics Inc. These companies are all fighting for a piece of the pie, and each one has its own unique advantages and disadvantages.

– Knight-Swift Transportation Holdings Inc ($NYSE:KNX)

Knight-Swift Transportation is one of the largest trucking companies in North America. It has a market cap of 7.76B as of 2022 and a ROE of 11.12%. The company operates in the United States, Mexico, and Canada. It has a fleet of over 16,000 trucks and trailers. Knight-Swift Transportation provides truckload, intermodal, and logistics services.

– ArcBest Corp ($NASDAQ:ARCB)

ArcBest Corporation is an American logistics company with operations in North America, Europe, and Asia. The company was founded in 1923 and is headquartered in Fort Smith, Arkansas. ArcBest provides a range of logistics services, including transportation, warehousing, and supply chain management. The company has a market cap of 1.8 billion as of 2022 and a return on equity of 24.79%.

– XPO Logistics Inc ($NYSE:XPO)

XPO Logistics Inc is a transportation and logistics company with a market cap of 3.87B as of 2022. The company has a return on equity of 44.59%. XPO Logistics Inc provides transportation and logistics services to customers in a variety of industries, including retail, e-commerce, food and beverage, manufacturing, and energy. The company operates a network of over 1,400 locations in more than 30 countries.

Summary

Investors analyzing Werner Enterprises in early 2023 can be encouraged by their fourth quarter earnings results. Despite a 22.7% drop in revenue compared to the same quarter of the prior year, the company saw a 12.6% increase in net income, amounting to USD 861.5 million. This is a positive sign that the company is taking steps to improve their financial performance and maintain healthy growth in future quarters. Investors should watch for further developments from the company as they look to capitalize on this encouraging sign.