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Landstar (LSTR) Boosts Buyback, Announces Special Dividend
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In a shareholder-friendly move, Landstar System (LSTR - Free Report) expanded its stock repurchase program. Following the increase authorized by its board of directors, Landstar is now allowed to purchase 3,000,000 shares under its share buyback scheme.
By boosting its repurchase plan, Landstar can purchase 1,912,824 shares of its common stock in addition to the 1,087,176 shares, which are remaining under the prior share buyback program. Besides driving its buyback program, LSTR’s board declared a special cash dividend of $2 per share. This one-time dividend will be paid out on Jan 21, 2022 to its stockholders of record at the close of trading on Jan 7.
The above shareholder-friendly announcements attest to Landstar’s financial strength. Per Jim Gattoni, the president and CEO of LSTR, “Landstar’s strong balance sheet and free cash flow generation enables us to continue to return value to our stockholders through a significant increase to our stock purchase program coupled with a special dividend.” Gattoni also said that Landstar will continue to utilize its available free cash flow to buy its stock under the share buyback scheme.
Landstar’s efforts to reward its shareholders through dividends and share buybacks even in the current uncertain scenario deserve praise. In July 2021, LSTR had increased its quarterly dividend by 19% to 25 cents per share (annualized $1). In the first nine months of 2021, LSTR rewarded its shareholders with $50 million through share repurchases and $102.5 million via dividends. LSTR’s impressive free cash flow-generation capacity supports such shareholder-friendly measures. In the first nine months of 2021, free cash flow generated by LSTR was $198.4 million.
The long-term expected earnings per share (three to five years) growth rate for Knight-Swift is pegged at 15%. KNX is benefiting from an improvement in the adjusted operating ratio (operating expense as a percentage of revenues). The adjusted operating ratio improved to 82.8% in the first nine months of 2021 from 86.6% reported in the first nine months of 2020. In third-quarter 2021, the metric improved to 81.3% from 83.9% a year ago.
This uptick in adjusted operating ratios is primarily driven by higher revenues in the Trucking, Logistics and Intermodal segments. Lower the value of the metric, the better. KNX has surged 45.2% in the past year. Knight-Swift sports a Zacks Rank #1 at present.
ArcBest currently sports a Zacks Rank of 1. ARCB has a stellar earnings surprise history as its bottom line outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 27.4%.
Shares of ArcBest have rallied more than 100% so far this year. Improving freight conditions in the United States bode well for ARCB. Solid customer demand and higher market rates are supporting growth at ARCB.
The long-term expected earnings per share (three to five years) growth rate for C.H. Robinson is pegged at 9%. CHRW benefits from higher pricing and volumes across most of its service lines. Total revenues jumped 42.4% year over year in the first nine months of 2021, with higher revenues across all the segments.
CHRW’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has moved 7.5% up in the past year. C.H. Robinson carries a Zacks Rank of 2 presently.
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Landstar (LSTR) Boosts Buyback, Announces Special Dividend
In a shareholder-friendly move, Landstar System (LSTR - Free Report) expanded its stock repurchase program. Following the increase authorized by its board of directors, Landstar is now allowed to purchase 3,000,000 shares under its share buyback scheme.
By boosting its repurchase plan, Landstar can purchase 1,912,824 shares of its common stock in addition to the 1,087,176 shares, which are remaining under the prior share buyback program. Besides driving its buyback program, LSTR’s board declared a special cash dividend of $2 per share. This one-time dividend will be paid out on Jan 21, 2022 to its stockholders of record at the close of trading on Jan 7.
The above shareholder-friendly announcements attest to Landstar’s financial strength. Per Jim Gattoni, the president and CEO of LSTR, “Landstar’s strong balance sheet and free cash flow generation enables us to continue to return value to our stockholders through a significant increase to our stock purchase program coupled with a special dividend.” Gattoni also said that Landstar will continue to utilize its available free cash flow to buy its stock under the share buyback scheme.
Landstar’s efforts to reward its shareholders through dividends and share buybacks even in the current uncertain scenario deserve praise. In July 2021, LSTR had increased its quarterly dividend by 19% to 25 cents per share (annualized $1). In the first nine months of 2021, LSTR rewarded its shareholders with $50 million through share repurchases and $102.5 million via dividends. LSTR’s impressive free cash flow-generation capacity supports such shareholder-friendly measures. In the first nine months of 2021, free cash flow generated by LSTR was $198.4 million.
Zacks Rank & Other Stocks to Consider
Landstar currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the Zacks Transportation sector may also consider Knight-Swift Transportation Holdings (KNX - Free Report) , ArcBest Corporation (ARCB - Free Report) and C.H. Robinson Worldwide (CHRW - Free Report) .
The long-term expected earnings per share (three to five years) growth rate for Knight-Swift is pegged at 15%. KNX is benefiting from an improvement in the adjusted operating ratio (operating expense as a percentage of revenues). The adjusted operating ratio improved to 82.8% in the first nine months of 2021 from 86.6% reported in the first nine months of 2020. In third-quarter 2021, the metric improved to 81.3% from 83.9% a year ago.
This uptick in adjusted operating ratios is primarily driven by higher revenues in the Trucking, Logistics and Intermodal segments. Lower the value of the metric, the better. KNX has surged 45.2% in the past year. Knight-Swift sports a Zacks Rank #1 at present.
ArcBest currently sports a Zacks Rank of 1. ARCB has a stellar earnings surprise history as its bottom line outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 27.4%.
Shares of ArcBest have rallied more than 100% so far this year. Improving freight conditions in the United States bode well for ARCB. Solid customer demand and higher market rates are supporting growth at ARCB.
The long-term expected earnings per share (three to five years) growth rate for C.H. Robinson is pegged at 9%. CHRW benefits from higher pricing and volumes across most of its service lines. Total revenues jumped 42.4% year over year in the first nine months of 2021, with higher revenues across all the segments.
CHRW’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has moved 7.5% up in the past year. C.H. Robinson carries a Zacks Rank of 2 presently.