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Werner (WERN) Buys NEHDS Logistics to Expand Final Mile Network

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Werner Enterprises WERN has acquired Monroe, CT-based final mile logistics service provider, NEHDS Logistics, for $64 million. The acquisition expands WERN’s final mile capabilities across the Northeast United States and the Midwest, where NEHDS operated with a fleet of more than 400 delivery trucks.

The transaction helps Werner offer its customers expanded transportation solutions for the delivery of big and bulky products by integrating NEHDS’ logistics service and technology with the its own existing nationwide final mile network.

With demand for final mile delivery services increasing amid the coronavirus pandemic, Werner’s acquisition of NEHDS is prudent. Previously, in July, the company acquired an 80% interest in regional truckload carrier, ECM Transport Group, as trucking volumes continued to recover from the pandemic-induced lows.

Werner Enterprises, Inc. Price

Werner Enterprises, Inc. Price
Werner Enterprises, Inc. Price

Werner Enterprises, Inc. price | Werner Enterprises, Inc. Quote


Werner expects the NEHDS acquisition to be accretive to its earnings per share in 2022. For the 12-month period ended September 2021, NEHDS generated annual revenues of $71.4 million. The company’s average annual revenues growth rate was 27% over the last three years. WERN also anticipates cost synergies in several areas of its business as a result of the transaction.

Werner, carrying a Zacks Rank #3 (Hold), will rebrand NEHDS into Werner Final Mile, and its financial results will be included in the Werner Logistics segment from fourth-quarter 2021 onward.

Key Picks

Some better-ranked stocks in the Transportation - Truck industry are as follows:

ArcBest Corporation ARCB sports a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 27.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of ArcBest have rallied more than 100% so far this year.

Knight-Swift Transportation Holdings KNX also carries a Zacks Rank #1. The company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 14%.

Shares of Knight-Swift have gained 39.1% so far this year.

Old Dominion Freight Line ODFL carries a Zacks Rank #2. The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 5.2%.

Shares of Old Dominion have surged more than 83% so far this year.


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Werner Enterprises, Inc. (WERN) : Free Stock Analysis Report

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