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Investing.com - Stifel lowered its price target on Werner Enterprises (NASDAQ:WERN) to $25.00 from $26.00 on Thursday, while maintaining a Hold rating on the transportation company’s stock. The company, currently trading at $27.72 with a market capitalization of $1.66 billion, has maintained dividend payments for 39 consecutive years, according to InvestingPro data.
Werner reported second-quarter 2025 adjusted earnings per share of $0.11, exceeding Stifel’s estimate of $0.02 and the consensus estimate of $0.05. The significant variance between actual results and estimates was attributed to high operating leverage at current margin levels. The company maintains a healthy liquidity position with a current ratio of 1.66, though it trades at a relatively high P/E ratio of 32.5x.
Stifel noted that Werner made more progress than expected in addressing challenges in both the market and its business model that had persisted throughout the freight downturn and intensified last quarter.
Despite welcoming this progress, Stifel cautioned that Werner’s current margin levels are not sustainable and additional improvements are needed before the firm can take a more positive stance on the stock.
The research firm maintained its Hold rating, describing Werner as "a bit of a show me story" while acknowledging that the company is moving "slowly in the right direction" with a base case that includes a healthier rate growth outlook and firmer demand picture.
In other recent news, Werner Enterprises Inc. reported its second-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.11, significantly higher than the projected $0.05, representing a 120% surprise. Werner Enterprises also reported revenues of $753 million, slightly above the forecast of $732.19 million, although this figure reflects a 1% decrease compared to the same period last year. Despite these positive results, the stock experienced a decline in aftermarket trading. The earnings report highlights the company’s ability to outperform earnings forecasts, indicating a stronger-than-expected financial performance. However, the year-over-year revenue decline might be a point of concern for some investors. Analyst firms have not yet provided any upgrades or downgrades following this earnings release. These developments provide insight into Werner Enterprises’ current financial health and market position.
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