Why did WERN's EPS underperform in 2024?

Werner Enterprises' EPS underperformance in 2024 can be attributed to a combination of factors:

1. **Revenue Declines**: Werner has faced challenges with revenue declines, which have impacted its profitability. For instance, Q1 2024 revenue missed estimates by 2.44%, with the company reporting $769.08 million, compared to the estimated $795.1 million. This trend of declining revenues has contributed to the EPS underperformance.
2. **Operating Expenses**: The company's operating expenses have been a significant factor affecting its net income and, consequently, its EPS. For example, in Q1 2024, Werner's operating income was reported at $15.6 million, which represented a decrease of 71% from the previous year. Such a decline in operating income naturally leads to a reduction in EPS.
3. **Strategic Growth Initiatives**: Werner has been navigating strategic growth initiatives, which have likely impacted its short-term profitability. For instance, the company has been investing in areas such as one-way truck utilization, which may not immediately translate to higher EPS due to the nature of these investments.

In summary, Werner's EPS underperformance in 2024 is primarily due to revenue declines and increased operating expenses, despite the company's strategic efforts to grow and invest in its business segments.