Werner Enterprises (NASDAQ: WERN) saw its stock plummet 10.95% in pre-market trading on Wednesday following a disappointing first-quarter earnings report and subsequent analyst downgrades. The trucking company reported a net loss and faced multiple challenges, prompting concerns about its near-term performance.

Werner's Q1 2025 results fell significantly short of expectations, with revenue down 7% year-over-year and an adjusted EPS of negative $0.12, compared to $0.14 in the same period last year. The company faced several headwinds, including elevated insurance costs, extreme weather conditions, and increased IT spending. Additionally, Werner experienced operational inefficiencies and lower utilization due to select customer decisions and tariff-induced uncertainty.

In response to the weak earnings, several analysts adjusted their outlook on Werner Enterprises. Evercore ISI downgraded the stock to Underperform from In Line and cut its price target to $21 from $27. Barclays reduced its target price to $28 from $32, while JP Morgan lowered it to $25 from $29. Bank of America Securities reiterated a Sell rating. These downgrades have likely contributed to the significant pre-market drop in Werner's stock price. Despite the challenges, Werner's CEO Derek Leathers emphasized that the company is "acting decisively" to address the issues, including increasing its cost savings target for 2025 from $25 million to $40 million. The firm has also secured several new dedicated fleet contracts, which are expected to be implemented in late Q2 and early Q3, potentially improving its performance in the coming quarters.