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Landstar (LSTR) Up 5.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Landstar System (LSTR - Free Report) . Shares have added about 5.2% 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 drivers.
Q3 Earnings Miss
Landstar reported disappointing third-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
Quarterly earnings per share (EPS) of $1.41 missed the Zacks Consensus Estimate of $1.46 and fell 17.5% year over year. The reported figure quarter lies within the guided range of $1.35 - $1.55.
Revenues of $1.21 billion lagged the Zacks Consensus Estimate of $1.22 billion as well as declined 5.8% year over year. The downside was owing to the weakness across majority of its segments in the reported quarter. The reported figure quarter lies within the guided range of $1.175-$1.275 billion.
Operating income fell 21.4% from the prior-year quarter’s figure to $63.11 million. Total costs and expenses (on a reported basis) decreased 4.7% to $1.15 billion.
LSTR’s Segmental Details
Total revenues in the truck transportation segment — contributing to 89.8% of the top line — amounted to $1.09 billion, down 7% from the year-ago quarter’s figure. Rail intermodal revenues of $20.97 million decreased 9% from the figure recorded in second-quarter 2023. Revenues in the ocean and air-cargo carrier segments improved 15.9% year over year to $76.34 million. Other revenues decreased 4.7% to $25.41 million.
Liquidity, Dividends & Buyback
At the end of third-quarter 2024, Landstar had cash and cash equivalents of $468.83 million compared with $438.06million recorded at the prior-quarter end. Additionally, long-term debt (excluding current maturities) totaled $44.83 million at the end of the third quarter compared with $45.39 million at the prior-quarter end.
During the third quarter of 2024, Landstar purchased almost 121,000 shares for $22.4 million. LSTR is currently authorized to purchase up to an additional 2,563,081 shares under its longstanding share purchase program.
Landstar’s board of directorsdeclared a quarterly cash dividend of 36 cents per share payable on Dec 10, 2024, to stockholders of record at the close of business on Nov 19, 2024.
LSTR’s Fourth-Quarter 2024 Guidance
LSTR expects fourth-quarter revenues in the range of$1.150 - $1.250 billion. LSTR expects fourth-quarter 2024 truckloads to be down 4% to up 1.0% on a year-over-year basis. Truck revenue per load is likely to improve from breakeven to 4% on a year-over-year basis. EPS is expected to be in the range of $1.25-$1.45 per share. Effective income tax rate is expected at 24.5%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -14.29% due to these changes.
VGM Scores
Currently, Landstar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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 #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Landstar is part of the Zacks Transportation - Truck industry. Over the past month, JB Hunt (JBHT - Free Report) , a stock from the same industry, has gained 4.6%. The company reported its results for the quarter ended September 2024 more than a month ago.
JB Hunt reported revenues of $3.07 billion in the last reported quarter, representing a year-over-year change of -3%. EPS of $1.49 for the same period compares with $1.80 a year ago.
JB Hunt is expected to post earnings of $1.68 per share for the current quarter, representing a year-over-year change of +14.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
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 C.
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Landstar (LSTR) Up 5.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Landstar System (LSTR - Free Report) . Shares have added about 5.2% 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 drivers.
Q3 Earnings Miss
Landstar reported disappointing third-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
Quarterly earnings per share (EPS) of $1.41 missed the Zacks Consensus Estimate of $1.46 and fell 17.5% year over year. The reported figure quarter lies within the guided range of $1.35 - $1.55.
Revenues of $1.21 billion lagged the Zacks Consensus Estimate of $1.22 billion as well as declined 5.8% year over year. The downside was owing to the weakness across majority of its segments in the reported quarter. The reported figure quarter lies within the guided range of $1.175-$1.275 billion.
Operating income fell 21.4% from the prior-year quarter’s figure to $63.11 million. Total costs and expenses (on a reported basis) decreased 4.7% to $1.15 billion.
LSTR’s Segmental Details
Total revenues in the truck transportation segment — contributing to 89.8% of the top line — amounted to $1.09 billion, down 7% from the year-ago quarter’s figure. Rail intermodal revenues of $20.97 million decreased 9% from the figure recorded in second-quarter 2023. Revenues in the ocean and air-cargo carrier segments improved 15.9% year over year to $76.34 million. Other revenues decreased 4.7% to $25.41 million.
Liquidity, Dividends & Buyback
At the end of third-quarter 2024, Landstar had cash and cash equivalents of $468.83 million compared with $438.06million recorded at the prior-quarter end. Additionally, long-term debt (excluding current maturities) totaled $44.83 million at the end of the third quarter compared with $45.39 million at the prior-quarter end.
During the third quarter of 2024, Landstar purchased almost 121,000 shares for $22.4 million. LSTR is currently authorized to purchase up to an additional 2,563,081 shares under its longstanding share purchase program.
Landstar’s board of directorsdeclared a quarterly cash dividend of 36 cents per share payable on Dec 10, 2024, to stockholders of record at the close of business on Nov 19, 2024.
LSTR’s Fourth-Quarter 2024 Guidance
LSTR expects fourth-quarter revenues in the range of$1.150 - $1.250 billion. LSTR expects fourth-quarter 2024 truckloads to be down 4% to up 1.0% on a year-over-year basis. Truck revenue per load is likely to improve from breakeven to 4% on a year-over-year basis. EPS is expected to be in the range of $1.25-$1.45 per share. Effective income tax rate is expected at 24.5%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -14.29% due to these changes.
VGM Scores
Currently, Landstar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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 #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Landstar is part of the Zacks Transportation - Truck industry. Over the past month, JB Hunt (JBHT - Free Report) , a stock from the same industry, has gained 4.6%. The company reported its results for the quarter ended September 2024 more than a month ago.
JB Hunt reported revenues of $3.07 billion in the last reported quarter, representing a year-over-year change of -3%. EPS of $1.49 for the same period compares with $1.80 a year ago.
JB Hunt is expected to post earnings of $1.68 per share for the current quarter, representing a year-over-year change of +14.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
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 C.