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Landstar (LSTR) Up 0.5% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Landstar System (LSTR). Shares have added about 0.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Landstar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Landstar Q1 Earnings Beat

Landstar System reported solid first-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate.

Quarterly earnings of $2.17 per share beat the Zacks Consensus Estimate of $2.07 but fell 35% year over year. The reported figure lies above the guided range of $2.05-$2.15. Revenues of $1,435.7 million beat the Zacks Consensus Estimate of $1,411.2 million but declined 27.2% year over year.

Operating income fell 37.8% from the prior-year quarter’s figure to $101.28 million. Total costs and expenses (on a reported basis) decreased 24.4% to $1.35 billion.

Total revenues in the truck transportation segment — contributing to 92.2% of the top line — amounted to $1.32 billion, down 12.1% from the year-ago quarter’s figure. Rail intermodal revenues of $25.66 million decreased 39.9% from the figure recorded in first-quarter 2022.

Revenues in the ocean and air-cargo carrier segments declined 59.8% year over year to $61.09 million. Other revenues increased 2.6% to $25.22 million.

Liquidity, Dividends & Buyback

At the end of first-quarter 2023, Landstar had cash and cash equivalents of $340.98 million compared with $339.58 million recorded at the end of December 2022. Additionally, long-term debt (excluding current maturities) totaled $60.19 million at the end of the first quarter compared with $67.22 million at the end of December 2022.

During the first quarter, Landstar purchased almost 90,000 shares for $15.4 million. LSTR is currently authorized to purchase up to 2,910,339 shares under its previously announced share purchase programs. LSTR’s board of directors has announced a quarterly dividend of 30 cents per share payable on May 26, 2023, to stockholders of record as of the close of business on May 4, 2023.

Q2 Outlook

Landstar anticipates second-quarter 2023 revenues in the range of $1.40 billion to $1.45 billion. Earnings per share for the second quarter are estimated to be in the band of $1.90 to $2.00.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -16.5% due to these changes.

VGM Scores

Currently, Landstar has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.


Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Landstar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Landstar belongs to the Zacks Transportation - Truck industry. Another stock from the same industry, JB Hunt (JBHT), has gained 0.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.

JB Hunt reported revenues of $3.23 billion in the last reported quarter, representing a year-over-year change of -7.4%. EPS of $1.89 for the same period compares with $2.29 a year ago.

JB Hunt is expected to post earnings of $2.11 per share for the current quarter, representing a year-over-year change of -12.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for JB Hunt. Also, the stock has a VGM Score of B.

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