The Gory Details on Werner Enterprises's Double Miss

Werner Enterprises (NAS: WERN) reported earnings on July 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Werner Enterprises missed estimates on revenues and missed estimates on earnings per share.

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

Gross margins increased, operating margins contracted, net margins shrank.

Revenue details
Werner Enterprises reported revenue of $506.6 million. The 17 analysts polled by S&P Capital IQ wanted to see a top line of $519.3 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 $0.35. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.37 per share. GAAP EPS of $0.35 for Q2 were 17% lower than the prior-year quarter's $0.42 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 50.8%, much better than the prior-year quarter. Operating margin was 8.4%, 30 basis points worse than the prior-year quarter. Net margin was 5.1%, 80 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $519.8 million. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $2.05 billion. The average EPS estimate is $1.38.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 52 members out of 76 rating the stock outperform, and 24 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Werner Enterprises a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Werner Enterprises is hold, with an average price target of $25.43.

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