NEW YORK (TheStreet) -- Shares of Werner Enterprises (WERN) - Get Werner Enterprises, Inc. Report are tumbling 8.59% to $22.56 on heavy trading volume late Tuesday morning after announcing that 2016 second quarter earnings will likely fall short of analysts' estimates.
The trucking and logistics company expects that current-quarter earnings will range between 21 cents and 25 cents per share, including a pre-tax gain of $3.4 million from the sale of real estate.
Analysts surveyed by Thomson Reuters are looking for earnings of 40 cents per share.
Freight market conditions have led to "difficult" customer rate negotiations, Werner said in a statement. The company is addressing "more challenging market conditions" by focusing on cost management.
Werner intends to reduce the average age of its truck fleet to about 1.5 years by December 31, but doesn't plan to grow its truck fleet until freight and rate markets show "meaningful improvement."
About 3.58 million shares of Werner have been traded so far today, well above its average trading volume of roughly 798,885 shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
Werner's strengths such as its largely solid financial position with reasonable debt levels by most measures and notable return on equity outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: WERN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.