Werner Enterprises misses Q4 revenue, profit estimates

Overview

• Transportation and logistics firm's Q4 revenue and adjusted EPS missed analyst expectations

• Company reported a Q4 operating loss of $35.8 mln, down from $13.4 mln income last year

• Strategic restructuring in One-Way Truckload business resulted in a $44.2 mln charge

Outlook

• Werner expects TTS average truck count to grow 23% to 28% in 2026

• Company forecasts net capital expenditures of $185 mln to $225 mln in 2026

• Werner anticipates effective income tax rate of 25.5% to 26.5% in 2026

Result Drivers

• DEDICATED REVENUE GROWTH - Supported by increased fleet size and customer retention, according to CEO Derek Leathers

• ONE-WAY TRUCKLOAD RESTRUCTURING - Strategic realignment led to a $44.2 mln charge, aimed at enhancing long-term profitability

• LOGISTICS SEGMENT MIXED RESULTS - Margin compression in Truckload Brokerage offset by gains in Intermodal and Final Mile

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 11 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy."

• Wall Street's median 12-month price target for Werner Enterprises Inc is $33.00, about 12.8% below its February 4 closing price of $37.83

• The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release: ID:nBw6NK2dZa

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