Post Earnings Coverage as Werner Q3 Topline Outperformed Forecasts

LONDON, UK / ACCESSWIRE / October 27, 2016 / Active Wall St. announces its post-earnings coverage on Werner Enterprises Inc. (NASDAQ: WERN). The company released its financial results for the third quarter fiscal 2016 (Q3 FY16) on October 20, 2016. The Omaha, Nebraska-based company’s total revenue fell 4.8% y-o-y during the reported period; however it beat analysts’ estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

Today, AWS is promoting its earnings coverage on WERN. Get our free coverage by signing up to http://www.activewallst.com/registration-3/?symbol=WERN.

Earnings Reviewed

During Q3 FY16, Werner Enterprises reported total revenue of $508.68 million, which was below $534.45 million recorded at the end of Q3 FY15. However, the company’s quarterly total revenue numbers outperformed Wall Street’s expectations of $498.5 million.

The transportation company’s net income for Q3 FY16 came in at $18.92 million, or $0.26 per diluted common share, compared to $32.08 million, or $0.44 per diluted common share, in the prior year’s quarter. Market analysts had also expected the company to report EPS of $0.26 per diluted share for the reported quarter.

In Q3 FY16, the company averaged 7,216 trucks in service in the Truckload segment and 75 intermodal drayage trucks in the Werner Enterprises Logistics segment. The company ended the quarter with 7,175 trucks in the Truckload segment, which was 240 trucks lower on y-o-y basis. Furthermore, the company’s Specialized service unit ended the quarter with 3,930 trucks, which was 90 trucks lower on a sequential basis.

Operating Metrics

For Q3 FY16, the trucking company’s operating income came in at $29.07 million compared to $52.80 million in the year ago period. In Q3 FY16, average revenues per tractor per week declined 4.7% y-o-y to $3,589 from $3,767 in Q3 FY15. The company attributed this decline to a 3.5% fall in average miles per truck along with a 1.2% decrease in average revenues per total mile.

Segment Performance

During the quarter ended September 30, 2016, Truckload Transportation Services segment revenue came in at $384.31 million compared to $417.86 million in the year ago period. The segment reported an operating income of $19.85 million versus $48.75 million in Q3 FY15. Excluding fuel surcharge revenues, a volatile source of revenue, the segment’s operating ratio was 94.8% compared to 88.3% in the year ago quarter.

Werner Enterprises’ Logistics segment generated revenue amounting to $10.46 million, which was 7% above the last year’s recorded revenue numbers of $102.15 million. In Q3 FY16, Werner Enterprises Logistics’ gross margin came in at 16.2% of the segment’s operating revenues, which was a 50 basis points improvement from 15.7% of segment operating revenues recorded in Q3 FY15. Furthermore, the operating income for Q3 FY16 stood at $4.89 million, or 4.5% of segment operating revenues compared to $5.02 million, or 4.9% of segment operating revenues reported in the year ago comparable quarter.

Cash Flow & Balance Sheet

In the three quarters ended on September 30, 2016, Werner Enterprises generated $30.15 million of cash from operations compared to $89.20 million reported in the previous year’s comparable period. The company had $13.74 million of cash and cash equivalents as on September 30, 2016, compared to $31.83 million at the close of books on December 31, 2015.

During the reported quarter, the company spent $33.49 million as capital expenditures compared to $91.70 million in Q3 FY15. Furthermore, the company’s long-term debt increased to $150.00 million as on September 30, 2016 from $75.00 million recorded on December 30, 2015.

As on September 30, 2016, the company provided annualized return on assets of 4.4% compared to 8.4% recorded at the end of last year’s comparable quarter. Additionally, annualized return on equity stood at 7.8% as on September 30, 2016, versus 14.4% as on September 30, 2015.

Stock Performance

Werner Enterprises’ stock is trading slightly up 0.1%, closing Wednesday’s session at $24.15 on volume of 1.27 million shares, which was above the 3 months average volume of 725.65 thousand shares. The stock has advanced 6.57% in the last month. Additionally, the company’s shares gained 4.01% since the beginning of the year. The company’s shares are trading a PE ratio of 16.34 and have a dividend yield of 0.99%.

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