Since Werner Enterprises, Inc. (NASDAQ:WERN) released its earnings in December 2018, analysts seem cautiously bearish, with profits predicted to rise by 9.2% next year against the higher past 5-year average growth rate of 19%. Presently, with latest-twelve-month earnings at US$168m, we should see this growing to US$184m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
How is Werner Enterprises going to perform in the near future?
The 15 analysts covering WERN view its longer term outlook with a positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of WERN’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of US$168m and the final forecast of US$203m by 2022, the annual rate of growth for WERN’s earnings is 5.0%. This leads to an EPS of $2.95 in the final year of projections relative to the current EPS of $2.35. Analysts are predicting earnings growth to outpace revenue by the end of 2022, resulting in a margin expansion from 6.8% to 7.1%.
Future outlook is only one aspect when you’re building an investment case for a stock. For Werner Enterprises, I’ve put together three relevant aspects you should look at:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is Werner Enterprises worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Werner Enterprises is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Werner Enterprises? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.