Werner Enterprises (NASDAQ: WERN) reported adjusted earnings per share (EPS) of 69 cents on Wednesday after the market close. The result was ahead of consensus estimates ranging from 65 cents to 67 cents.
The company’s truckload (TL) segment saw revenue excluding fuel surcharges of $417 million, flat year-over-year. Revenue per tractor per week increased 4% in the company’s one-way segment and 6% in the dedicated unit as both divisions saw pricing improve.
Revenue per total mile increased 3% in the one-way segment. Management expects revenue per total mile to increase in the 3% to 5% range year-over-year during the fourth quarter.
Price improvements and cost management drove 380 basis points of improvement in the TL adjusted operating ratio (OR) of 84.5%.
“The rapidly recovering economy and tight driver market produced strong freight conditions in third quarter 2020, which have continued into October,” said President and CEO Derek Leathers.
Logistics revenue was 3% lower year-over-year and gross margin fell 440 basis points to 10.8%. TL brokerage loads declined 15% in the quarter with revenue per load remaining level compared to the 2019 third quarter. The decline in gross margin was the result of surging spot rates, which forced the company to pay more for TL capacity in order to meet contractual rate agreements. The division posted a loss of $852,000.
Werner will host a conference call to discuss these results with analysts at 5 p.m. EDT Wednesday. Stay tuned to FreightWaves for more coverage on Werner’s earnings report.
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