U.S. Markets closed

Werner Enterprises, Inc. (NASDAQ:WERN): What Are The Future Prospects?

Sam Bishop

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

On 31 December 2018, Werner Enterprises, Inc. (NASDAQ:WERN) released its earnings update. Generally, the consensus outlook from analysts appear somewhat bearish, as a 10% rise in profits is expected in the upcoming year, relative to 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$185m by 2020. Below is a brief commentary around Werner Enterprises’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

See our latest analysis for Werner Enterprises

How is Werner Enterprises going to perform in the near future?

The view from 16 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. 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.

NASDAQGS:WERN Future Profit February 11th 19

This results in an annual growth rate of 5.1% based on the most recent earnings level of US$168m to the final forecast of US$195m by 2022. EPS reaches $2.83 in the final year of forecast compared to the current $2.33 EPS today. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 6.8% to 6.7% by the end of 2022.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Werner Enterprises, I’ve compiled three important aspects you should further research:

  1. 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.
  2. 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.
  3. 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!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.