Werner Enterprises Inc. (NASDAQ:WERN) reported revenues and earnings for the first quarter ended March 31, 2016.
Our first quarter 2016 freight demand was softer than the first quarters of 2015 and 2014; however, it was consistent with our average freight demand in the first quarters of 2013 and 2012. Demand showed normal seasonality in first quarter 2016. Freight demand to date in April 2016 has been sluggish and softer than most April periods.
Average revenues per tractor per week, net of fuel surcharge, decreased 2.4% in first quarter 2016 compared to first quarter 2015 due to a 1.5% decrease in average miles per truck combined with a 0.9% decrease in average revenues per total mile, net of fuel surcharge.
The rate market was challenging in first quarter 2016. While truckload capacity is currently available in the market, we believe significantly lower truck orders in recent months combined with the upcoming changes in trucking regulations should begin to tighten the capacity market in the next few quarters. We are continuing to work with our customers to recoup the cost increases associated with more expensive equipment, a shrinking supply of qualified drivers and an increasingly challenging regulatory environment. Recent customer bid activity trends have been mixed, as some customers are aggressively working to take advantage of the favorable shorter term trends to the detriment of carriers. Based on the current rate and freight market, we believe it may be difficult to achieve rate per total mile increases on a year-over-year basis in the next few quarters. Strategic customers understand the collective capacity and service challenges facing our industry and their supply chains. They are supportive of our ongoing initiatives to provide sustainable transportation solutions over the longer term.
In first quarter 2016, we averaged 7,352 trucks in service in the Truckload segment and 68 intermodal drayage trucks in the VAS segment. We ended first quarter 2016 with 7,330 trucks in the Truckload segment, a year-over-year improvement of 220 trucks, or 3.1%, compared to the end of first quarter 2015. Our Specialized Services unit, primarily Dedicated, ended first quarter 2016 with 3,760 trucks (or 51% of our total Truckload segment fleet).
By design, we did not grow our truck fleet sequentially from fourth quarter 2015 to first quarter 2016. A less robust seasonal freight period in first quarter 2016 combined with our more stringent driver hiring and retention standards were the primary factors. We are committed to executing our strategic business plan by remaining focused on our “five T” critical success factors: trucks, trailers, talent, technology and terminals. We will continue to aggressively reinvest in these areas to strengthen our service offerings and provide our customers with the capacity and support they need.
Werner Enterprises Inc. earnings per share showed an increasing trend of 25.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 178%.Analysts project EPS growth over the next 5 years at 9.91%. It has EPS annual growth over the past 5 fiscal years of 9.2% when sales grew 2.9. It reported -2.6% sales drop, and -13% EPS decline in the last quarter.
The stock is trading at $24.89, up 19.29% from 52-week low of $20.91. The stock trades down -14.56% from its peak of $29.34 and 16.11% above the consensus price target of $28.9. Its volume clocked up at 0.91 million shares which is higher than the average volume of 0.77 million shares. Its market capitalization currently stands at $1.77B.
0 yorum:
Yorum Gönder