Werner Enterprises Inc (NASDAQ:WERN)
Werner Enterprises, Inc. (WERN), a global transportation and logistics company yesterday announced expected earnings numbers for second quarter 2016. Werner reported second quarter expected earnings to be in between $0.21 and $0.25 per share which fell short of analyst expectations of $0.40 per share.
Werner Enterprises, Inc. Comments
“Werner said market conditions have led to “difficult” customer rate negotiations. Werner said Monday that it is focusing on cost-management initiatives. The company is moving toward a goal to reduce the average age of its truck fleet to about 1.5 years by Dec. 31, but it doesn’t plan to expand its truck fleet until freight and rate markets “show meaningful improvement.” Wall Street Journal
WERN Technical Analysis
WERN opened trading yesterday at $24.69 which was up from the previous days trading of $24.35. WERN closed trading yesterday at $24.68 and crashed down after market to $22.00, equivalent to a 11% decrease from the closing price. Taking a look at the daily chart we can see the last time WERN traded below these levels was on January 20th when it traded at $21.69 . Taking a closer look at the daily chart we can see that WERN has been on a downward trend dating back to April 19th when it traded at $28.48. WERN has a float of 44.60 million shares and traded below the normal daily trading volume on Monday. For trading purposes, I would like to see WERN open trading on Tuesday below $23.00 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
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 Australia. It operates through two segments, Truckload Transportation Services and Value Added Services. 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; and regional short-haul fleet, which provides comparable truckload van service in the United States. It also provides truckload services dedicated to a specific customer, including services for products requiring specialized trailers, such as flatbed or temperature-controlled trailers. This segment transports retail store merchandise, consumer products, grocery products, and manufactured products.
The Value Added Services 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; and management of shipments from origin to destination using a combination of air, ocean, truck, and rail transportation modes. As of December 31, 2015, the company had a fleet of 7,450 trucks, including 6,635 company-operated and 815 owned and operated by independent contractors; 24,090 company-owned trailers comprising 22,560 dry vans, 184 flatbeds, 1,308 temperature-controlled trailers, and 38 specialized trailers; and 62 intermodal drayage trucks. Werner Enterprises, Inc. was founded in 1956 and is headquartered in Omaha, Nebraska.