Freight delivery company Werner (NASDAQ:WERN) will be reporting earnings tomorrow after the bell. Here’s what to look for.
Werner missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $760.8 million, down 6.2% year on year. It was a disappointing quarter for the company, with a miss of analysts’ operating margin estimates.
Is Werner a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Werner’s revenue to decline 6.3% year on year to $766 million, a further deceleration from the 1.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 10 analysts). Werner has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Werner’s peers in the ground transportation segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Covenant Logistics posted flat year-on-year revenue, missing analysts’ expectations by 2.8%, and Saia reported revenues up 8.6%, in line with consensus estimates. Covenant Logistics’s stock price was unchanged following the results.
Read our full analysis of Covenant Logistics’s results here and Saia’s results here.
Investors in the ground transportation segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Werner is down 3.2% during the same time and is heading into earnings with an average analyst price target of $36.93 (compared to the current share price of $37.34).
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