Werner Enterprises’ third-quarter earnings did not meet consensus estimates on revenue or the bottom line, and its operating ratio declined from a year ago.
Here are some of the highlights. Werner’s (NASDAQ: WERN) call with analysts is at 5 p.m. EDT on Tuesday.
The operating ratio for the company’s Truckload Transportation Services division deteriorated by 320 basis points, to 94.7%.
There were some signs of improvement from a year ago. For example, in the entire Truckload Transportation Services segment, average revenue per truck per week net of fuel rose 3.5%. That positive came mostly from the One-Way Truckload segment, where OR rose by 6.9%. In the Dedicated segment, that figure rose just 1.67%.
Average total miles per truck per week in the One-Way Truckload segment were up 6.6%. A year ago, the year-on-year comparison was 3.3%.
But revenue for the Truckload Transportation segment was down 9%. Operating income in the segment was $21.6 million, down 44.3%.
Total company revenue of $745.7 million was less than the SeekingAlpha consensus estimate of $766 million. Net income of 9 cents per share was well below the SeekingAlpha consensus of 21 cents per share.
CEO Derek Leathers in the company’s prepared statement released with the earnings said: “We continue to make structural changes, driving operating efficiencies, cost savings and advancing our technology roadmap. We continue to adapt to ever-changing conditions and remain focused on positioning Werner for strength and creating long-term value for our shareholders as conditions improve.”
Initial reaction in the stock market was negative. At approximately 4:20 p.m. EDT, Werner stock was down 3.42% to $37. The stock had been up about 5.3% in the past year but down about 2.5% in the past three months.
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