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Category: Stock Market and Werner Enterprises
Date: 28 October 2019 Stock Price: $38.85 We take a look at the 3rd quarter earnings report of their 2019 fiscal year of Werner Enterprises a premier logistics and transportation company, and one of the 5 largest truck load carriers in the United States.
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About Werner Enterprises
Werner Enterprises, Inc. (Werner), Omaha NE, was founded in 1956 by C.L. Werner, our first driver. Werner is a premier transportation and logistics company. Werner Enterprises, Inc. was founded in 1956 and is a premier transportation and logistics company, with coverage throughout North America, Asia, Europe, South America, Africa and Australia. Werner maintains its global headquarters in Omaha, Nebraska and maintains offices in the United States, Canada, Mexico and China.
Werner is among the five largest truckload carriers in the United States, with a diversified portfolio of transportation services that includes dedicated; medium-to-long-haul, regional and expedited van; and temperature-controlled. The Werner Logistics portfolio includes truck brokerage, freight management, intermodal, international and final mile services. International services are provided through Werner’s domestic and global subsidiary companies and include ocean, air and ground transportation; freight forwarding; and customs brokerage.
Werner is among the five largest truckload carriers in the United States, with a diversified portfolio of transportation services that includes dedicated; medium-to-long-haul, regional and expedited van; and temperature-controlled. The Werner Logistics portfolio includes truck brokerage, freight management, intermodal, international and final mile services. International services are provided through Werner’s domestic and global subsidiary companies and include ocean, air and ground transportation; freight forwarding; and customs brokerage.
Overview of Werner's 3rd quarter 2019 earnings report
Data below refers to quarterly data unless specified otherwise:
- Revenues: $618.624 million (down from $629.735 million for the same period of the previous year)
- Revenues decreased by -1.77% over the last 12 months
- Total expenses: $564.907 million (down from $566.349 million for the same period of the previous year)
- Total expenses increased by -0.25% over the last 12 months
- Net income: $30.044 million (down $47.514 million from for the same period of the previous year)
- Diluted earnings per share: $0.56 (down from $0.66 for the same period of the previous year)
- Diluted weighted-average shares outstanding: 69.6 million (down from 71.752 million for the same period of the previous year)
- Cash and cash equivalents: $14.354 million
- Cash and cash equivalents per share: $0.21
- Cash and cash equivalents makes up 0.54% of Werner's market capital
- Cash and cash equivalents makes up 0.66% of Werner's total assets
- Stockholders equity in Werner Enterprises: $1.064 billion
- Stockholders equity per share in Werner Enterprises: $15.29
- So Werner is trading at 2.54 times its stockholders equity per share which is within the expected range of between 2 and 4 most firms tend to trade at
Werner Enterprises' management commentary on their 3rd quarter 2019 results
OMAHA, Neb., Oct. 24, 2019 (GLOBE NEWSWIRE) -- Werner Enterprises, Inc. (NASDAQ: WERN), one of the nation’s largest transportation and logistics companies, today reported financial results for third quarter ended September 30, 2019.
“We are pleased to report another strong earnings quarter, the second highest third quarter earnings in our history. A year ago in third quarter 2018, the freight and rate market conditions were the best in decades. In third quarter 2019, the freight and rate markets were meaningfully softer, but showed signs of seasonal improvement towards the end of the quarter,” said Derek J. Leathers, President and Chief Executive Officer. “Notwithstanding the current softer freight market and macroeconomic uncertainty, our five T’s strategy, combined with our balanced revenue portfolio of Dedicated, One-Way Truckload and Logistics, positions Werner to be successful in a variety of markets. Our performance in third quarter 2019 in a relatively challenging freight market demonstrates the strength of our strategic operating model.”
“We are pleased to report another strong earnings quarter, the second highest third quarter earnings in our history. A year ago in third quarter 2018, the freight and rate market conditions were the best in decades. In third quarter 2019, the freight and rate markets were meaningfully softer, but showed signs of seasonal improvement towards the end of the quarter,” said Derek J. Leathers, President and Chief Executive Officer. “Notwithstanding the current softer freight market and macroeconomic uncertainty, our five T’s strategy, combined with our balanced revenue portfolio of Dedicated, One-Way Truckload and Logistics, positions Werner to be successful in a variety of markets. Our performance in third quarter 2019 in a relatively challenging freight market demonstrates the strength of our strategic operating model.”
Fiscal guidance for Werner's full fiscal 2019
The image below shows the fiscal guidance for the rest of their 2019 fiscal year
The image below shows the fiscal guidance for the rest of their 2019 fiscal year
Werner Enterprises (NASDAQ: WERN) stock price history
The image below, obtained from Google, shows the stock price history of Werner over the last 5 years. And its been a very good time for Werner stockholders. 5 years ago the stock was trading at around $27.60 a stock and its currently trading at $38.85 a stock. That's a decent return of 40.7% provided to Werner stockholders over the last 5 years. While the return of Werner over the last 5 years is not to be frowned upon, the opportunity cost of holding Werner stock instead of say Netflix that returned over 300% over a 5 year period becomes significant.
The stock of Werner is trading at a lot closer to its 52 week high of $39.18 than it is to its 52 week low of $27.27 which to us is a clear indication that the short term sentiment and momentum of Werner stock is very positive right now.
The stock of Werner is trading at a lot closer to its 52 week high of $39.18 than it is to its 52 week low of $27.27 which to us is a clear indication that the short term sentiment and momentum of Werner stock is very positive right now.
Recent coverage of Werner Enterprises
The extract below discusses the latest news regarding Werner Enterprises as obtained from TheStreet,com
OMAHA, Neb., Oct. 25, 2019 (GLOBE NEWSWIRE) -- Werner Enterprises (NASDAQ: WERN), a premier transportation and logistics provider, is honored to be recognized as a returning winner of the 2020 FreightTech 100 Awards by FreightWaves. "Werner Enterprises is proud to be a winner once again of this prestigious award," said President and Chief Executive Officer Derek Leathers. "Supported by leading-edge technology, experienced professionals and an extensive global network, Werner continues to work on shaping the future of transportation." The FreightTech 100 Awards highlight innovative companies across the freight industry. Winners of the FreightTech 100 Award will be judged by an external panel of industry experts, who will rank the companies to showcase the top 25. This year's FreightTech 100 includes 70 returning companies from last year's awards and 30 newly selected companies.
OMAHA, Neb., Oct. 25, 2019 (GLOBE NEWSWIRE) -- Werner Enterprises (NASDAQ: WERN), a premier transportation and logistics provider, is honored to be recognized as a returning winner of the 2020 FreightTech 100 Awards by FreightWaves. "Werner Enterprises is proud to be a winner once again of this prestigious award," said President and Chief Executive Officer Derek Leathers. "Supported by leading-edge technology, experienced professionals and an extensive global network, Werner continues to work on shaping the future of transportation." The FreightTech 100 Awards highlight innovative companies across the freight industry. Winners of the FreightTech 100 Award will be judged by an external panel of industry experts, who will rank the companies to showcase the top 25. This year's FreightTech 100 includes 70 returning companies from last year's awards and 30 newly selected companies.
Werner Enterprises (NASDAQ: WERN) latest stock valuation
So what is Werner Enterprises stock worth based on the release of their latest earnings report? Based on the earnings report and fiscal guidance provided by Werner Enterprises our our valuation models provide a target (full value) price for Werner Enterprises stock at $36.60 a stock. We therefore believe that the stock of Werner Enterprises is slightly overvalued but very close to being fully valued
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $36.60. Therefore we believe a good entry point into Werner Enterprises stock is at $32,90 or below. We expect the stock price of Werner Enterprises will trade mostly sideways in a close range close to our target (full value) price in coming weeks and months.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $36.60. Therefore we believe a good entry point into Werner Enterprises stock is at $32,90 or below. We expect the stock price of Werner Enterprises will trade mostly sideways in a close range close to our target (full value) price in coming weeks and months.
Next earnings release date for Werner Enterprises
It is expected that Werner Enterprises 4th quarter and full year results of their 2019 fiscal year will be released in late January 2020.