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Why Is Landstar (LSTR) Down 4.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Landstar System (LSTR - Free Report) . Shares have lost about 4.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Landstar due for a breakout? 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.
Q2 Earnings Beat
Quarterly earnings per share of $1.48 beat the Zacks Consensus Estimate of $1.46 but fell 20% year over year. Revenues of $1.225 billion lagged the Zacks Consensus Estimate of $1.255 billion as well as declined 10.8% year over year. The downside was owing to the weakness across all its segments in the reported quarter.
Operating income fell 22.6% from the prior-year quarter’s figure to $68.05 million. Total costs and expenses (on a reported basis) decreased 9.9% to $1.160 billion.
Segmental Details
Total revenues in the truck transportation segment — contributing to 90.2% of the top line — amounted to $1.105 billion, down 11.3% from the year-ago quarter’s figure.
Rail intermodal revenues of $22.30 million decreased 11.5% from the figure recorded in second-quarter 2023. Revenues in the ocean and air-cargo carrier segments declined 5.5% year over year to $71.30 million. Other revenues decreased 2% to $25.70 million.
Liquidity, Dividends & Buyback
At the end of second-quarter 2024, Landstar had cash and cash equivalents of $438.06 million compared with $467.67million recorded at the prior-quarter end. Additionally, long-term debt (excluding current maturities) totaled $45.39 million at the end of the second quarter compared with $38.49 million at the prior-quarter end.
During the second quarter of 2024, Landstar purchased almost 316,000 shares for $57 million. LSTR is currently authorized to purchase up to an additional 2,684,000 shares under its longstanding share purchase program.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -11.91% due to these changes.
VGM Scores
Currently, Landstar has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Landstar has a Zacks Rank #5 (Strong Sell). We expect a below average 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 - Free Report) , has gained 0.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
JB Hunt reported revenues of $2.93 billion in the last reported quarter, representing a year-over-year change of -6.5%. EPS of $1.32 for the same period compares with $1.81 a year ago.
For the current quarter, JB Hunt is expected to post earnings of $1.47 per share, indicating a change of -18.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for JB Hunt. Also, the stock has a VGM Score of C.
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Why Is Landstar (LSTR) Down 4.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Landstar System (LSTR - Free Report) . Shares have lost about 4.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Landstar due for a breakout? 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.
Q2 Earnings Beat
Quarterly earnings per share of $1.48 beat the Zacks Consensus Estimate of $1.46 but fell 20% year over year. Revenues of $1.225 billion lagged the Zacks Consensus Estimate of $1.255 billion as well as declined 10.8% year over year. The downside was owing to the weakness across all its segments in the reported quarter.
Operating income fell 22.6% from the prior-year quarter’s figure to $68.05 million. Total costs and expenses (on a reported basis) decreased 9.9% to $1.160 billion.
Segmental Details
Total revenues in the truck transportation segment — contributing to 90.2% of the top line — amounted to $1.105 billion, down 11.3% from the year-ago quarter’s figure.
Rail intermodal revenues of $22.30 million decreased 11.5% from the figure recorded in second-quarter 2023. Revenues in the ocean and air-cargo carrier segments declined 5.5% year over year to $71.30 million. Other revenues decreased 2% to $25.70 million.
Liquidity, Dividends & Buyback
At the end of second-quarter 2024, Landstar had cash and cash equivalents of $438.06 million compared with $467.67million recorded at the prior-quarter end. Additionally, long-term debt (excluding current maturities) totaled $45.39 million at the end of the second quarter compared with $38.49 million at the prior-quarter end.
During the second quarter of 2024, Landstar purchased almost 316,000 shares for $57 million. LSTR is currently authorized to purchase up to an additional 2,684,000 shares under its longstanding share purchase program.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -11.91% due to these changes.
VGM Scores
Currently, Landstar has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Landstar has a Zacks Rank #5 (Strong Sell). We expect a below average 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 - Free Report) , has gained 0.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
JB Hunt reported revenues of $2.93 billion in the last reported quarter, representing a year-over-year change of -6.5%. EPS of $1.32 for the same period compares with $1.81 a year ago.
For the current quarter, JB Hunt is expected to post earnings of $1.47 per share, indicating a change of -18.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for JB Hunt. Also, the stock has a VGM Score of C.