Werner Enterprises stock peaks on strong 3Q report

Shares of Werner Enterprises hit new year high after 3Q earnings beat Wall Street expectations

• On 12:23 pm EDT, Tuesday October 20, 2009

HARTFORD, Conn. (AP) -- Shares of Werner Enterprises Inc. soared to a new year high Tuesday, a day after the trucking and logistics company posted third-quarter profit that widely beat Wall Street estimates.

The stock climbed $2.04, or 10.9 percent, to $20.69 in midday trading. The stock earlier hit $21.40, eclipsing a prior 52-week high of $20.07 set nearly a year ago.

Werner Enterprises said Monday its third-quarter profit fell 15 percent as sales dropped 27 percent, but income of 26 cents per share beat the average estimate of 20 cents per share among analysts polled by Thomson Reuters.

Deutsche Bank analyst Justin Yagerman said in a note to investors that Werner's volumes are moving off a low point and "started to modestly ascend, showing some degree of seasonality for the first time since 2005."

He increased his 2009 estimate to 81 cents per share from 67 cents and raised his 2010 estimate to $1 per share from 95 cents per share.

Meanwhile, KeyBanc analyst Todd C. Fowler increased his 2009 estimate to 78 cents per share from 65 cents per share. He raised his 2010 estimate to 95 cents per share from 85 cents.

Fowler said in a client note his higher estimates reflect a modest improvement in the freight business and anticipated benefits from cost reduction in the next few quarters.

Fowler and Yagerman maintained "Hold" ratings for Werner Enterprises.

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