Werner (WERN) Up 4.5% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Werner Enterprises (WERN). Shares have added about 4.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Werner due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Werner's Q2 Earnings Beat Estimates

Werner reported second-quarter 2025 earnings per share of 11 cents, which surpassed the Zacks Consensus Estimate of 5 cents but declined 36% from the year-ago reported quarter figure.

Total revenues of $753.14 million beat the Zacks Consensus Estimate of $736.7 million but dipped 1% on a year-over-year basis dueto a $19.4 million, or 4%, decrease in Truckload Transportation Services (TTS) revenues, partially offset by an increase in Logistics revenues of $12.3 million, or 6%. A portion of the TTS revenue decline was due to $14.8 million lower fuel surcharge revenues.

WERN reported adjusted operating income of $16.55 million, down 22% year over year. Adjusted operating margin of 2.2% declined 60 basis points from the year-ago reported quarter.

WERN’s Q2 Segmental Results

Revenues in the TTS segment fell 4% on a year-over-year basis to $517.64 million due to lower fuel surcharge revenues. Adjusted operating income of $12.77 million fell 45% year over year owing to an $8.5 million increase in insurance and claims expense (excluding expense for the reversal of the aforementioned accident lawsuit and verdict from 2018), net impact of change in fuel (surcharges net of fuel expense), and expense associated with implementation of new fleets in Dedicated, partially offset by an increase in gains on sale of property and equipment. Adjusted operating margin of 2.5% declined 180 basis points.

Logistics’ revenues totaled $221.17 million, up 6% year over year. Adjusted operating income rose to $5.87 million in the second quarter from $1.69 million in the year-ago quarter. Adjusted operating margin increased 190 basis points year over year to 2.7%.

Liquidity

As of June 30, 2025, Werner had cash and cash equivalents of $51.42 million compared with $51.95 million at the prior-quarter end. Long-term debt (net of current portion) totaled $725 million at the end of the reported quarter compared with $640 million at the prior-quarter end.

The company generated $46 million of cash from operations in second-quarter 2025. Net capital expenditure amounted to$65.6 million.

During the second quarter, WERN repurchased 2.1 million shares for $55 million. As of June 30, 2025, WERN had 1.8 million shares remaining under its share repurchase authorization.

WERN’s Outlook

For 2025, Werner now anticipates TTS truck growth to improve in the range of 1-4% (prior view: 1-5%). Net capital expenditure is now estimated to be in the range of $145-$185 million (prior view: $185-$235 million).

Under the TTS guidance, WERN continues to project dedicated revenues per truck per week to rise from breakeven to 3% in 2025. The full-year 2025 tax rate is anticipated to be in the range of 25%-26%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -15.3% due to these changes.

VGM Scores

At this time, Werner has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Werner has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Werner belongs to the Zacks Transportation - Truck industry. Another stock from the same industry, JB Hunt (JBHT), has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

JB Hunt reported revenues of $2.93 billion in the last reported quarter, representing a year-over-year change of -0%. EPS of $1.31 for the same period compares with $1.32 a year ago.

For the current quarter, JB Hunt is expected to post earnings of $1.50 per share, indicating a change of +0.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.

JB Hunt has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

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This article originally published on Zacks Investment Research (zacks.com).

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