Trucking stocks fell across the board after Werner Enterprises, Inc. released a second quarter outlook that was dramatically lower than what was forecasted.
Werner’s second quarter earnings estimates were 42% lower than forecasted. The company’s earnings for the second quarter were only $0.21 to $0.25 per share when Wall Street predicted that they should be $0.40 per share.
Werner Blames Higher Driver Pay, Weak Demand, For Weak Earnings
Werner blamed several factors for the weak profit earnings — most notably they said that an increase in driver pay hurt their profits. They also blamed overcapacity and weak demand from shippers for the low earnings. Werner also says that they are having trouble selling their used trucks.
Other Trucking Stocks React To Werner’s News
Stocks for several major companies reacted to the news. Werner’s own stock price dropped 9.9% while Celadon’s fell 11%, Swift’s was down 5.9%, and Knight saw a 5% decrease.
Second quarter profits are usually robust for trucking companies as they emerge from the demands and delays of winter months, making Werner’s forecast, in the words of analysts at Deutsche Bank “particularly disturbing.”