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Werner Enterprises Eyes Double-Digit Margins Despite Near-Term Cost Pressures

Werner Enterprises reported third-quarter adjusted earnings per share of 16 cents, matching a profit warning issued earlier in the month. Consolidated revenue reached $951 million, up 23 percent year over year and at the top end of management's revised guidance, driven primarily by higher fuel surcharges and the January acquisition of dedicated carrier FirstFleet.

Sequential cost increases totaling 18 cents per share weighed on results, stemming from elevated diesel fuel prices, higher driver recruitment expenses and a reserve adjustment for prior claims. The company offset these headwinds with $8 million in asset sale gains, providing a 4-cent benefit.

Werner accelerated driver recruiting and onboarding investments during the quarter, adding 130 dedicated trucks and drivers ahead of corresponding revenue generation. Management projects modest sequential improvement in the fourth quarter but cautioned that cost pressures will extend into the first quarter. Executives remain confident in capitalizing on rising freight demand.