Shares of trucking companies fluctuated Thursday amid a volatile broader market, as two carriers reported third-quarter earnings that beat Wall Street's expectations.
Omaha, Neb.-based Werner Enterprises Inc. said its third-quarter earnings rose 3 percent, beating Wall Street's expectations, as it offset sluggish freight demand with a wider selection of services for customers.
Van Buren, Ark.-based USA Truck Inc. reported third-quarter earnings that also surpassed analysts' estimates, pointing to a jump in fuel surcharge revenue and a comparison to a year-ago period weighed down by a hefty legal expense.
In general, truckers during the quarter benefited from moderating diesel prices, and saw their fuel surcharges boosted because of the lag between the price the company pays for fuel and what it charges shippers.
But the future still looks gloomy for some trucking companies, a Longbow Research analyst noted Thursday.
He suggests that demand in the less-than-truckload market, which has been sliding since July, might still be getting worse this month.
He said that despite the negative tone of a recent industry survey, he is maintaining his estimates for major LTL carriers until they reveal third-quarter results.
"Stocks are looking very tempting from a valuation perspective, but given the increased risk of a recession, there may be another shoe to drop in terms of demand and pricing," he said.
In afternoon trading, Werner rose $1.11, or 6.3 percent, to $18.75, while USA Truck lost 35 cents, or 2.3 percent, to $14.82.
In the LTL market, YRC Worldwide Inc. jumped 73 cents, or 18.3 percent, to $4.73. Con-way Inc. fell 27 cents to $34.63.
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