Werner (NASDAQ:WERN): Missed Q4 Revenue Estimates

* Werner (WERN) reported Q4 CY2024 revenue of $754.7 million, below analyst estimates ($761.4 million) by 8.2%.
* Non-GAAP EPS of $0.08 fell short of consensus expectations ($0.22) by 63.1%.

Company Overview

* Werner provides full-truckload, less-than-truckload, and intermodal delivery services globally.
* E-commerce and global trade growth drive industry demand, creating opportunities for ground transportation companies.
* Economic cycles and fuel costs can impact profit margins.

Sales Growth

* Sales have grown at a modest 4.2% annualized over the past five years.
* Revenue declined by 4% annually over the last two years, mirroring an industry downturn.

Truckload Transportation and Logistics

* Truckload Transportation revenue declined an average of 6% year-over-year in the past two years.
* Logistics revenue averaged 3.2% growth.

Operating Margin

* Werner's operating margin of 7.8% over the last five years was below industry average.
* Margin declined by 6 percentage points over the same period.

Earnings Per Share (EPS)

* EPS declined by 25.9% annually over the last five years.
* Two-year annual EPS declines of 62% indicate underperformance.
* Q4 EPS of $0.08 missed estimates by $0.39.
* Wall Street projects a full-year EPS of $0.53 for 2025, representing a 128% increase.

Key Takeaways

* Revenue and EPS missed analyst expectations in Q4 CY2024.
* Werner's long-term performance shows a lack of profitability and growth.
* Economic headwinds and competition have impacted the company's financial results.
* Analysts remain cautiously optimistic about the company's future growth potential.