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The Gory Details on Werner Enterprises's Double Fumble

By Seth Jayson - Updated Apr 10, 2017 at 1:47PM

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Just the facts, Fool.

Werner Enterprises (Nasdaq: WERN) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Werner Enterprises missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly. GAAP earnings per share shrank significantly.

Gross margins grew, operating margins contracted, net margins contracted.

Revenue details
Werner Enterprises tallied revenue of $492.9 million. The 17 analysts polled by S&P Capital IQ anticipated revenue of $503.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.24. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.24 for Q1 were 17% lower than the prior-year quarter's $0.29 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 50.0%, much better than the prior-year quarter. Operating margin was 5.8%, 40 basis points worse than the prior-year quarter. Net margin was 3.6%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $522.5 million. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $2.07 billion. The average EPS estimate is $1.40.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 54 members out of 78 rating the stock outperform, and 24 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Werner Enterprises a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Werner Enterprises is outperform, with an average price target of $25.75.

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Stocks Mentioned

Werner Enterprises, Inc. Stock Quote
Werner Enterprises, Inc.
WERN
$39.92 (0.15%) $0.06

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