Wells Fargo upgraded Werner (WERN) to Outperform from Market Perform saying the valuation is "compelling" ahead of next week's earnings report. Werner's utilization metrics lead competitors and the company has "significant room" for growth in rates, the firm tells investors in a research note. It has a $31-$32 price target range for the stock. Wells is "growing more positive" on truckload names, but keeps Market Perform ratings on Heartland Express (HTLD), Knight Transportation (KNX) and Swift Transport (SWFT).

Reports Q1 revenue $1.82B, consensus $1.82B. CEO Adam Miller commented, "The full truckload market remains extremely challenging as carriers navigate the oversupply of capacity, reduced load volumes, and continued rate pressure through the early part of the bid season. This has negatively impacted the results of our Truckload, Logistics, and Intermodal segments...Although our consolidated results are not where we would like them to be, we are confident that we have the resources and are capable of the disciplined approach necessary to navigate the current market...We are continuing our strategy of building a nationwide LTL network through both organic and inorganic growth paths. Our logistics segment will continue to complement our truckload brands, leverage our power-only capabilities, preserve profitability, and afford outsized growth opportunity when the truckload market strengthens. We are building a strong foundation of diverse customers in our intermodal business with strategic rail partners, which we believe will position us for sustained profitability in the future."