Freight delivery company Werner (NASDAQ: WERN) will be reporting results this Tuesday after market hours. Here’s what to expect.
Werner beat analysts’ revenue expectations last quarter, reporting revenues of $808.6 million, up 13.6% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income 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 24.1% year on year, a reversal from the 1% decrease 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 Q2 results, giving us a hint as to what we can expect. Knight-Swift Transportation delivered year-on-year revenue growth of 12.6%, beating analysts’ expectations by 2%, and Ryder reported revenues up 5%, topping estimates by 1.3%. Knight-Swift Transportation traded down 4.9% following the results while Ryder was also down 3.1%.
Read our full analysis of Knight-Swift Transportation’s results here and Ryder’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). 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 3.5% on average over the last month. Werner is down 3.1% during the same time and is heading into earnings with an average analyst price target of $42.87 (compared to the current share price of $42.42).
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