Werner Enterprises Q3 revenue misses estimates as higher fuel costs weigh on margins
Overview
U.S. truckload carrier's Q3 revenue rose 23% but slightly missed analyst expectations
Adjusted net income rose from a year-earlier loss but missed analyst expectations
Revenue growth driven by TTS segment gains and FirstFleet acquisition, offset by higher fuel costs
Outlook
Werner Enterprises narrows 2026 TTS average truck count growth forecast to 16%-17%
Company expects 2026 Dedicated RPTPW growth of 4%-5%
2026 net capital expenditures forecast lowered to $190 mln-$205 mln
Result Drivers
TTS SEGMENT GROWTH - Revenue rose 37% in Truckload Transportation Services, driven by the FirstFleet acquisition and higher per-truck revenue
FIRSTFLEET ACQUISITION - Dedicated fleet size and revenues increased significantly due to the addition of FirstFleet
HIGHER FUEL COSTS - Rapidly rising fuel costs weighed on margins during the quarter
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $950.51 mln | $955.05 mln (13 Analysts) |
Q3 EPS | $0.11 | ||
Q3 Adjusted Net Income | Miss | $9.49 mln | $13.46 mln (9 Analysts) |
Q3 Adjusted Operating Income | $20.98 mln | ||
Q3 Adjusted Operating Margin | 2.20% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 10 "hold" and 2 "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 $38.00, about 34.1% above its October 26 closing price of $28.33
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 29 three months ago
Reuters Recommended Reads
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)