Werner (NasdaqGS:WERN) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Werner Enterprises, Inc. (NasdaqGS:WERN) is scheduled to report Q3 earnings results after markets close for trading on October 28, 2020.

The company is expected to report earnings of $0.67/share on revenue of $602 million. The consensus earnings per share (EPS) of $0.67/share is based on a poll of 17 analysts and represents a growth in eps of 17.2% over the same quarter last year, when the company reported earnings of $0.57/share.

The revenue forecast of $602 million based on a poll of 11 analysts implies a year-over-year (YoY) decline in revenue of −2.6%. Last year the company reported $618.3 million in revenue for the quarter.

Expected to report EPS growth of 17.2% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $601.96 $618.26 −2.6%
EPS $0.67 $0.57 17.2%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

What are your expectations from Werner Enterprises, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.40 $0.62 53.6% Beat
Q1, 2020 $0.35 $0.40 13.2% Beat
Q4, 2019 $0.60 $0.67 12.3% Beat
Q3, 2019 $0.59 $0.57 −3.6% Missed
Q2, 2019 $0.64 $0.63 −1.3% Missed
Q1, 2019 $0.47 $0.52 9.9% Beat
Q4, 2018 $0.69 $0.75 9.3% Beat
Q3, 2018 $0.60 $0.66 10.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 4.5%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 29, 2020 $42.60 $44.52 4.5% Increase
April 28, 2020 $41.99 $41.13 −2.0% Decline
February 5, 2020 $37.51 $39.59 5.5% Increase
October 24, 2019 $37.73 $38.85 3.0% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.38, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.38 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

Werner Enterprises, Inc. is currently trading at $41.51/share, up 0.7% for the day. The company is trading at approximately 87.5% of its 52-week high of $47.43/share. The company’s stock price is down −6.8% since the last earnings report and down −3.9% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 38.46 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:WERN Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 19.16 and a forward P/E multiple of 16.88.

Werner Enterprises, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.52. The following table summarizes some other key fundamental ratios:

Data as of October 21, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $41.51
P/E Ratio 19.2x
P/E Ratio (Fwd) 16.9x
PEG Ratio −1.2
Total Debt / Total Capital 6.1%
Levered Free Cash Flow $142 million
EV / EBITDA 6.6x

Finbox

Werner Enterprises, Inc. is a mid-cap stock with a market capitalization of $2.868 billion and a total enterprise value of $2.989 billion. The company operates in the Industrials sector and the Road & Rail industry.

Werner Enterprises, Inc., a transportation and logistics company, engages in transporting truckload shipments of general commodities in interstate and intrastate commerce in the United States, Mexico, Canada, China, and internationally. It operates in two segments, Truckload Transportation Services and Werner Logistics. The Truckload Transportation Services segment operates medium-to-long-haul van fleet, which transports various consumer nondurable products and other commodities in truckload quantities using dry van trailers; the expedited fleet that offers time-sensitive truckload services using driver teams; regional short-haul fleet, which provides comparable truckload van service in the United States; and temperature controlled fleet that offers truckload services for temperature sensitive products using temperature-controlled trailers. It transports retail store merchandise, consumer products, grocery products, and manufactured products. The Werner Logistics segment provides non-asset-based transportation and logistics services, including truck brokerage; logistics management services and solutions; rail transportation through alliances with rail and drayage providers; management of shipments from origin to destination using a combination of air, ocean, truck, and rail transportation modes; and home and business deliveries of heavy items using liftgate straight truck. As of December 31, 2019, the company had a fleet of 8,000 trucks, which included 7,460 company-operated, as well as 540 owned and operated by independent contractors; 24,145 company-owned trailers that comprised dry vans, flatbeds, and temperature-controlled and other specialized trailers; and 33 intermodal drayage trucks. Werner Enterprises, Inc. was founded in 1956 and is headquartered in Omaha, Nebraska.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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