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Earnings Preview: Werner Enterprises (WERN) Q2 Earnings Expected to Decline
Earnings Preview: Werner Enterprises (WERN) Q2 Earnings Expected to Decline

Yahoo

time22-07-2025

  • Business
  • Yahoo

Earnings Preview: Werner Enterprises (WERN) Q2 Earnings Expected to Decline

Wall Street expects a year-over-year decline in earnings on lower revenues when Werner Enterprises (WERN) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Zacks Consensus Estimate This transportation company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -70.6%. Revenues are expected to be $736.75 million, down 3.2% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 17.83% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). How Have the Numbers Shaped Up for Werner? For Werner, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +45.71%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Werner will beat the consensus EPS estimate. Does Earnings Surprise History Hold Any Clue? Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Werner would post earnings of $0.12 per share when it actually produced a loss of -$0.12, delivering a surprise of -200.00%. The company has not been able to beat consensus EPS estimates in any of the last four quarters. Bottom Line An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Werner doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Werner Enterprises, Inc. (WERN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

The Top 5 Analyst Questions From Werner's Q1 Earnings Call
The Top 5 Analyst Questions From Werner's Q1 Earnings Call

Yahoo

time25-06-2025

  • Business
  • Yahoo

The Top 5 Analyst Questions From Werner's Q1 Earnings Call

Werner's first quarter results were met with a negative market reaction, driven by a combination of elevated insurance claims, disruptive weather, and increased technology investment that weighed on profitability. CEO Derek Leathers was candid about the company's underperformance, citing a significant insurance verdict and weather-related disruptions as key drivers of the loss. Leathers stated, 'Our first quarter results did not meet our expectations,' and highlighted that adverse insurance outcomes, including a single large verdict, had a meaningful impact. Management also pointed to higher IT spending and isolated operating inefficiencies as compounding factors. Is now the time to buy WERN? Find out in our full research report (it's free). Revenue: $712.1 million vs analyst estimates of $737.2 million (7.4% year-on-year decline, 3.4% miss) Adjusted EPS: -$0.12 vs analyst estimates of $0.12 (significant miss) Adjusted EBITDA: $65.73 million vs analyst estimates of $89.32 million (9.2% margin, 26.4% miss) Operating Margin: -0.8%, down from 2% in the same quarter last year Market Capitalization: $1.7 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jason Seidl (TD Cowen) asked about the margin dynamics between dedicated and One-Way divisions. CEO Derek Leathers clarified that dedicated margins outperformed One-Way, which remained under pressure, and that new dedicated wins should be margin accretive as they ramp up. Ari Rosa (Citigroup) pressed on structural changes to address insurance cost volatility. Leathers acknowledged the unpredictability, emphasizing ongoing focus on safety and legislative advocacy but conceding that outsized verdicts remain a material industry risk. Scott Group (Wolfe Research) questioned whether recent M&A activity contributed to the operating loss. Leathers responded that acquisitions occurred before the freight downturn and have yet to deliver full operating leverage, but customer growth remains positive within acquired businesses. Bascome Majors (Susquehanna) inquired about the effects of tariff uncertainty on retailer customer discussions and bid season. Management noted that retail customers are seeking execution certainty, with more business shifting from spot to contract, and that bid outcomes and actual volumes are tracking more closely this year. Chris Wetherbee (Wells Fargo) sought clarity on the timeline and financial benefits of the EDGE TMS technology rollout. Leathers stated that full productivity gains are expected to materialize late Q3 into Q4, with logistics operations already seeing some improvement. In the coming quarters, the StockStory team will be monitoring (1) the successful onboarding and performance of newly awarded dedicated fleet contracts, (2) progress toward achieving the increased cost savings target and the resulting impact on margins, and (3) the pace and effectiveness of the EDGE TMS technology rollout across all business lines. Developments in tariff policy and insurance claim trends will also be important external factors to watch. Werner currently trades at $27.55, in line with $27.66 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

3 Hated Stocks Playing with Fire
3 Hated Stocks Playing with Fire

Yahoo

time09-05-2025

  • Business
  • Yahoo

3 Hated Stocks Playing with Fire

The past year hasn't been kind to the stocks featured in this article. Each has tumbled to their lowest points in 12 months, leaving investors to decide whether they're witnessing fire sales or falling knives. While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider. One-Month Return: -2.7% Trademarking its recognizable UPS Brown color, UPS (NYSE:UPS) offers package delivery, supply chain management, and freight forwarding services. Why Should You Dump UPS? Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable Eroding returns on capital suggest its historical profit centers are aging United Parcel Service is trading at $96.95 per share, or 12.7x forward P/E. To fully understand why you should be careful with UPS, check out our full research report (it's free). One-Month Return: -7.2% Conducting business in over a 100 countries, Werner (NASDAQ:WERN) offers full-truckload, less-than-truckload, and intermodal delivery services. Why Are We Out on WERN? Sales tumbled by 5.9% annually over the last two years, showing market trends are working against its favor during this cycle Earnings per share fell by 34.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Eroding returns on capital from an already low base indicate that management's recent investments are destroying value At $26.71 per share, Werner trades at 21.9x forward P/E. Read our free research report to see why you should think twice about including WERN in your portfolio, it's free. One-Month Return: -8.7% Based in Texas, LGI Homes (NASDAQ:LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States. Why Do We Think LGIH Will Underperform? Average backlog growth of 4.9% over the past two years was mediocre and suggests fewer customers signed long-term contracts Shrinking returns on capital suggest that increasing competition is eating into the company's profitability Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution LGI Homes's stock price of $55.15 implies a valuation ratio of 7.2x forward P/E. Check out our free in-depth research report to learn more about why LGIH doesn't pass our bar. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio

Werner: Q1 Earnings Snapshot
Werner: Q1 Earnings Snapshot

Yahoo

time29-04-2025

  • Business
  • Yahoo

Werner: Q1 Earnings Snapshot

OMAHA, Neb. (AP) — OMAHA, Neb. (AP) — Werner Enterprises Inc. (WERN) on Tuesday reported a loss of $10.1 million in its first quarter. The Omaha, Nebraska-based company said it had a loss of 16 cents per share. Losses, adjusted for one-time gains and costs, were 12 cents per share. The results did not meet Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 12 cents per share. The transportation company posted revenue of $712.1 million in the period, which also did not meet Street forecasts. Four analysts surveyed by Zacks expected $746.8 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on WERN at Sign in to access your portfolio

1 Small-Cap Stock to Own for Decades and 2 to Steer Clear Of
1 Small-Cap Stock to Own for Decades and 2 to Steer Clear Of

Yahoo

time18-04-2025

  • Business
  • Yahoo

1 Small-Cap Stock to Own for Decades and 2 to Steer Clear Of

Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on. But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors. The downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here is one small-cap stock that could be the next big thing and two that could be down big. Market Cap: $2.88 billion Formerly known as Restoration Hardware, RH (NYSE:RH) is a specialty retailer that exclusively sells its own brand of high-end furniture and home decor. Why Does RH Give Us Pause? Poor same-store sales performance over the past two years indicates it's having trouble bringing new shoppers into its brick-and-mortar locations Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 14.5% annually Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders RH is trading at $155 per share, or 12.3x forward price-to-earnings. If you're considering RH for your portfolio, see our FREE research report to learn more. Market Cap: $1.69 billion Conducting business in over a 100 countries, Werner (NASDAQ:WERN) offers full-truckload, less-than-truckload, and intermodal delivery services. Why Are We Out on WERN? Sales tumbled by 4% annually over the last two years, showing market trends are working against its favor during this cycle Incremental sales over the last five years were much less profitable as its earnings per share fell by 26% annually while its revenue grew Diminishing returns on capital suggest its earlier profit pools are drying up Werner's stock price of $27.45 implies a valuation ratio of 22.5x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than WERN. Market Cap: $1.42 billion Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ:MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats. Why Should You Buy MGNI? Annual revenue growth of 33.7% over the last five years was superb and indicates its market share increased during this cycle Incremental sales significantly boosted profitability as its annual earnings per share growth of 77.3% over the last five years outstripped its revenue performance Robust free cash flow margin of 24.8% gives it many options for capital deployment, and its improved cash conversion implies it's becoming a less capital-intensive business At $9.65 per share, Magnite trades at 10.6x forward price-to-earnings. Is now a good time to buy? See for yourself in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio

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