Werner Enterprises (WERN) Guides Q2 EPS Below Expectations

Werner Enterprises, Inc. (Nasdaq: WERN) announced that, based on factors known as of the date of this release, it expects earnings per diluted share for the second quarter ending June 30, 2016 to be in the range of 21 cents to 25 cents per share. The expected earnings include a pre-tax gain on sale of real estate of $3.4 million.

*** The Street sees Q2 EPS of $0.40.

The principal factors negatively affecting earnings per share in second quarter 2016 compared to second quarter 2015 include: (1) sluggish freight market conditions resulting in decelerating rate per total mile trends from difficult 2016 customer rate negotiations and weak spot market rates, lower miles per truck and increased empty miles, (2) the cost of driver pay increases implemented first quarter 2016 and independent contractor per mile increases in fourth quarter 2015, and (3) a soft used truck market. To address these more challenging market conditions, Werner continues to focus on various cost management initiatives.

Werner intends to continue, as part of its strategic plan, to reduce the average age of its truck fleet to approximately 1.5 years by December 31, 2016, but does not plan to grow its truck fleet until such time as its freight and rate markets show meaningful improvement.

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