Werner (WERN) Q3 earnings: what to expect
Freight delivery company Werner (NASDAQ:WERN) will be announcing earnings results this Tuesday after the bell. Here’s what you need to know.
Werner met analysts’ revenue expectations last quarter, reporting revenues of $933.9 million, up 24% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and adjusted operating income in line with analysts’ estimates.
Is Werner a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Werner’s revenue to grow 23.8% year on year, improving from the 3.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Werner has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Werner’s peers in the transportation and logistics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Ryder delivered year-on-year revenue growth of 8.3%, beating analysts’ expectations by 1.2%, and Knight-Swift Transportation reported revenues up 14.2%, topping estimates by 1.4%. Ryder traded up 12.7% following the results while Knight-Swift Transportation was down 1%.
Read our full analysis of Ryder’s results here and Knight-Swift Transportation’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the transportation and logistics stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.9% on average over the last month. Werner is down 13.8% during the same time and is heading into earnings with an average analyst price target of $39.07 (compared to the current share price of $28.90).
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