Werner Enterprises sees cost headwinds lingering into Q1
Werner Enterprises outlined a path back to mid-cycle margins on a Tuesday evening call, but noted cost headwinds—some transitory and some growth-related—could linger into the first quarter. The post Werner Enterprises sees cost headwinds lingering into Q1 appeared first on FreightWaves .
Werner Enterprises anticipates cost pressures will continue into the first quarter, despite reporting adjusted earnings per share of 16 cents in the third quarter, in line with expectations. The company's revenue grew 23% year-over-year to $951 million, driven by higher fuel surcharges and the January acquisition of FirstFleet. However, cost increases from elevated diesel prices, higher driver procurement expenses, and a reserve adjustment for prior claims offset this growth, resulting in an 18-cent drag on earnings.
While gains on asset sales and favorable changes in reserves provided a 4-cent tailwind, remaining cost pressures, such as fuel surcharges and insurance claims, are expected to dissipate in the fourth quarter.
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