Shares of Omaha, Nebraska, based Werner Enterprises, Inc. (WERN) fell on Tuesday, versus the background of a partially higher day in stocks overall. Werner’s stock was down 9.60%, falling $2.37 per share, to close at $22.31, on volume of 6,337,953 shares. The company announced lower than expected earnings for the second quarter of this year, which resulted in downgrades in both the company’s rating and its target share cost by several major analysts. Established in 1956, Werner Enterprises, Inc. is a transportation and logistics company, taken part in hauling truckload shipments of general products in both interstate and intrastate commerce. It runs through the Truckload Transport Services and Value Added Services segments. The Truckload Transportation Services sector includes three operating fleets which are regional short-haul, medium-to-long-haul van, and accelerated fleet. The Value Added Services segment is a non-asset-based transportation and logistics company, providing non-trucking services, including truck brokerage, freight management, intermodal and global deliveries utilizing a mix of shipping techniques. The business’s stock trades on the NASDAQ Exchange. On Tuesday early morning, Werner’s stock was downgraded by analysts at JPMorgan. They decreased the rating from “overweight” to “neutral”. In addition, the target cost for the stock was lowered to $23 from $30. Deutsche Bank also decreased its stock cost target on Werner, cutting it to $22 from $29. Bank of America decreased its score of Werner from “neutral” to “underperform”, and lowered the stock target cost to $22 from $29. Likewise, Credit Suisse cut its stock price target to $21 from $26. The downgrade began the heels of Werner’s second-quarter 2016 earnings expectations statement. The company announced that it expects incomes per diluted share to be in the variety of between $0.21 and $0.25, for the quarter ending June 30, 2016. The expected earnings show a pretax gain of $3.4 million ($0.03 per share) on the sale of property. The revenues price quote is well below the 2nd quarter consensus of $0.39 to $0.40 per share that analysts had actually been expecting. It is likewise as much as 44% listed below the 2nd quarter 2015 outcomes. The business has actually pointed out factors adversely affecting earnings owing to a slow freight market that is triggering a deceleration in the rate per total mile trends, as an outcome of 2016 client rate settlements as well as weak spot market rates, lower miles per truck (see post below) and enhanced empty miles. They likewise pointed out the increased cost of motorist rates, which were executed earlier this year, as well as independent contractor per mile enhances late last year. The company has actually likewise cited a soft utilized truck market as an extra factor. Werner is barely alone in its profits dry spell. Down pressure is impacting other significant competitors in the trucking market. “We believe this will overhang the Truckload sector, and possibly the whole Transport sector, into profits,” wrote Bank of America/Merrill Lynch analyst Ken Hoexter. “The soft retail market continues to overhang the transports, with Intermodal volumes down 7 percent QTD year-over-year at the rails, and truckers not seeing take advantage of share gains …” In the face of lower-than-expected earnings, Werner thinkings to minimize the average age of its truck fleet by 1.5 years by the end of 2016. However, the company does not prepare to expand its truck fleet “till such time as its freight and rate markets show meaningful enhancement”.
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Innovation And Development Center To properly display its long history of producing technology that continues to transform the fleet management market, ARI, the largest privately owned worldwide fleet services provider focusing on intricate vehicle and truck fleets, has actually opened the ARI Technology and Development Center in Mount Laurel, New Jersey. The 107,000 square foot structure was designed to influence new ideas and solutions that assist companies around the globe enhance their total bottom lines by conserving money on their fleets. Located in the exact same business center as the company’& rsquo; s international headquarters, the Innovation and Innovation Center will be home to the company’& rsquo; s 200-plus member infotech group. Furthermore, a cutting edge call center enables ARI’& rsquo; s extremely certified group of service technicians to enhance their workflow and handle call time through making use of actual time metrics and information that shows up from the one-of-a-kind Command Center. A considerable variety of ARI’& rsquo; s 400-plus ASE licensed specialists will call this brand-new building house. The center likewise houses sales, marketing and Partners In Quality, the group responsible for ARI’& rsquo; s quality management and worker engagement programs. “& ldquo; We are very proud and ecstatic to formally open the ARI Innovation and Innovation Center,” & rdquo; said ARI President Chris Conroy. “& ldquo; This new structure represents our company’& rsquo; s steadfast dedication to purchasing both our individuals and the latest innovations to the benefit of our clients. We know that if we support our workers by supplying them with world class centers and the tools to drive innovation, they will continue to develop the sort of industry-leading options that our customers and the market have actually pertained to get out of us.” & rdquo; ARI has continuously proven its dedication to advancing innovation that mines and examines data to reveal ways to drive fleet efficiency up and total expense of ownership down. One-quarter of ARI’& rsquo; s running bud …
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