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Landstar System (LSTR) Q1 Earnings & Revenues Top, Down Y/Y

Landstar System, Inc. (LSTR) 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.

Landstar System, Inc. Price, Consensus and EPS Surprise

 

Landstar System, Inc. Price, Consensus and EPS Surprise
Landstar System, Inc. Price, Consensus and EPS Surprise

Landstar System, Inc. price-consensus-eps-surprise-chart | Landstar System, Inc. Quote

 

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.

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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-$1.45 billion. Earnings per share for the second quarter are estimated to be in the band of $2.05-$2.15.

Currently, Landstar carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Transportation Companies

J.B. Hunt Transport Services, Inc.’s JBHT first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.

JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decline in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.

JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.

Delta Air Lines’ DAL first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.

DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.

Alaska Air Group, Inc. ALK reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.

ALK’s operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% owing to continued recovery in air-travel demand.

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