Werner Grapples With Weak Freight Market and Rising Expenses

Industry Challenges - Weak freight demand due to supply chain disruptions caused by hurricanes, leading to reduced shipping capacity and lower freight rates [1] - Driver shortage persists as older drivers retire and younger generations show less interest in trucking jobs [4] Company Performance - Werner Enterprises (WERN) faces a decline in Truckload Transportation Services (TTS) segment growth, with 2024 guidance revised to a decline of 8-6% from the previous 6-3% [2] - High operating expenses, with labor costs at $258.3 million (34.6$64.8 million in Q3 2024 [3] - WERN's stock has dropped 15.5% over the past year, underperforming the industry's 5.6% decline [4] Earnings and Market Sentiment - Zacks Consensus Estimate for WERN's Q4 and full-year 2024 earnings has been revised downward, reflecting declining broker confidence [7] - WERN's Zacks Rank is 4 (Sell) with a Value Score of D, indicating unattractiveness [9] Alternative Investment Options - C H Robinson Worldwide (CHRW) has a Zacks Rank 2 (Buy), with earnings surpassing estimates in three of the last four quarters and an expected 2024 earnings growth rate of 33.3% [11] - Wabtec Corporation (WAB) also holds a Zacks Rank 2 (Buy), with earnings exceeding estimates in three of the last four quarters and an expected 2024 earnings growth rate of 28.55% [12]