Stryker shares tumble despite strong Q2 results and raised guidance
On Monday, UBS analyst Thomas Wadewitz revised the price target for Werner Enterprises (NASDAQ:WERN) shares, reducing it to $36 from the previous $39, while maintaining a Neutral rating on the stock. The company currently trades at $35.03, near its 52-week low of $33.12, with InvestingPro data showing seven analysts have recently revised their earnings estimates downward. Wadewitz anticipates that the first quarter results will likely show seasonal weakness in comparison to the fourth quarter, despite January’s elevated spot truckload (TL) rates.
Wadewitz projects a Truckload Transportation Services (TTS) operating ratio of 95.4% for the first quarter, which represents a 260 basis point decline from Werner’s fourth quarter operating ratio, excluding insurance true up, which was at 92.8%. He also forecasts a break-even performance in the Logistics segment, leading to an expected earnings per share (EPS) of $0.09 for the first quarter. This comes as the company faces revenue challenges, with InvestingPro data showing a 7.71% revenue decline in the last twelve months. Get access to Werner’s comprehensive Pro Research Report and 8 additional ProTips by subscribing to InvestingPro.
The analyst estimates a gradual improvement in One-Way revenue per mile, projecting an increase of 5%-6% year-over-year in the second half of the year. Additionally, a modest growth in the TTS fleet is expected to contribute to a full-year 2025 EPS forecast of $1.03, which is lower than the prior estimate of $1.30.
Wadewitz’s analysis suggests that while there may be some positive developments in the latter half of the year, the immediate future for Werner Enterprises may be challenging due to the anticipated seasonal downturn and the subsequent impact on the company’s financial performance. The new price target reflects these considerations and the adjusted expectations for the company’s earnings.
In other recent news, Werner Enterprises Inc. has announced the approval of restricted stock awards for two of its top executives. The company’s Board of Directors granted these awards under the 2023 Long-Term Incentive Plan. Executive Vice President, Treasurer, and Chief Financial Officer, Christopher D. Wikoff, received 5,081 shares, while President and Chief Legal Officer, Nathan J. Meisgeier, was granted 12,702 shares. These shares are set to fully vest on the third anniversary of the grant date. The incentive plan, approved by Werner’s stockholders, aims to align executive compensation with long-term shareholder value. This strategic move is part of Werner’s approach to retain and motivate its leadership by tying their compensation to the company’s performance. The complete details of the restricted stock awards and the Long-Term Incentive Plan are available in the company’s SEC filings.
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