Category: LSTR

LSTR – Landstar (LSTR) Up 4.6% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Landstar System (LSTR Free Report) . Shares have added about 4.6% 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.

Earnings Beat at Landstar in Q2

Landstar’s earnings of $2.40 per share surpassed the Zacks Consensus Estimate of $2.34. The bottom line surged more than 100% year over year on higher revenues. The year-ago period was characterized by significant downturn in operations due to weak freight market conditions, thanks to the effects of coronavirus.

Revenues of $1,570.7 million also outperformed the Zacks Consensus Estimate of $1,497.4 million. The top line soared 90.7% year over year owing to strong performances of the truck transportation, rail intermodal, and ocean and air cargo carriers segments. During the second quarter, the company repurchased 150,000 shares for approximately $23.8 million.

Detailed Statistics

Gross profit (revenues excluding the cost of purchased transportation and commissions to agents) came in at $220.8 million in the reported quarter, up 95.2% year over year.

Operating income soared more than 200% from the prior-year quarter’s figure to $122.25 million. Total costs and expenses (on a reported basis) increased 82.9% to $1.45 billion.
 
Total revenues in the truck transportation segment — contributing 91.9% of the top line — amounted to $1.44 billion, up 91.7% from the year-ago quarter’s figure. Within the truck transportation segment, revenues hauled via van equipment rose more than 100% to $970.9 million. Truckload transportation revenues hauled via unsided/platform equipment climbed 79.6% to $444.3 million.

Less-than-truckload revenues increased 26.8% to $29.06 million. Overall second-quarter truck transportation revenue per load rose 38.4% year over year.

Rail intermodal revenues of $44.36 million increased 91.3% from the figure recorded in second-quarter 2020.  Revenues in the ocean and air cargo carriers segment surged 96.4% year over year to $60.24 million. Other revenues increased 34.3% to $21.93 million.

Liquidity

At the end of the second quarter, Landstar had cash and cash equivalents of $186.40 million compared with $249.35 million recorded at the end of 2020. Additionally, long-term debt (excluding current maturities) totaled $51.18 million at the end of the second quarter compared with $65.36 million at the end of 2020.

Q3 Outlook

Landstar anticipates revenues in the third quarter of 2021 to be in the range of $1.55-$1.60 billion. Earnings per share are estimated in the band of $2.20-$2.30.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month. The consensus estimate has shifted 10.77% due to these changes.

VGM Scores

Currently, Landstar has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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

Landstar has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

LSTR – Landstar System (LSTR) Q2 Earnings and Revenues Beat Estimates

Landstar System (LSTR Free Report) came out with quarterly earnings of $2.40 per share, beating the Zacks Consensus Estimate of $2.34 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 2.56%. A quarter ago, it was expected that this freight shipper and warehouser would post earnings of $1.61 per share when it actually produced earnings of $2.01, delivering a surprise of 24.84%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Landstar, which belongs to the Zacks Transportation – Truck industry, posted revenues of $1.57 billion for the quarter ended June 2021, surpassing the Zacks Consensus Estimate by 4.89%. This compares to year-ago revenues of $823.51 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Landstar shares have added about 14.4% since the beginning of the year versus the S&P 500’s gain of 15.1%.

What’s Next for Landstar?

While Landstar has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Landstar was favorable. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.27 on $1.44 billion in revenues for the coming quarter and $8.64 on $5.56 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation – Truck is currently in the top 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

LSTR – Landstar Hires Fred Pensotti as New Chief Financial Officer

JACKSONVILLE, Fla., May 24, 2021 (GLOBE NEWSWIRE) — Landstar System, Inc. (NASDAQ:LSTR), a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation logistics services, today announced that Fred Pensotti has joined the company as Chief Financial Officer, effective today.

Pensotti has more than 20 years of strategic business and financial leadership at large publicly-held and private-equity owned corporations in a variety of industries. Most recently, he served as Chief Financial Officer of One Call, a $1.5 billion healthcare-related services company. Prior to joining One Call, Pensotti held CFO roles at e-commerce logistics and omni-channel solutions provider Radial, Inc. (formerly eBay Enterprise) and Interline Brands, a leading wholesale distributor of maintenance, repair and operations products.

“Fred’s proven success in improving operational and financial performance, financial planning and analysis, and driving shareholder value will be an asset for Landstar,” said Landstar President and CEO Jim Gattoni. “We look forward to his fresh perspective and collaborative approach to leadership as a member of the company’s executive team.”

In his role at Landstar, Pensotti will be responsible for safeguarding the company’s assets and managing the entire financial and administrative operation of the multi-billion dollar enterprise.

“I am excited to join the Landstar team and look forward to working with our employees, customers, agents, capacity providers and shareholders, as we continue to build upon Landstar’s outstanding record of growth and innovation in the freight transportation industry,” stated Pensotti.

About Landstar
Landstar System, Inc. is a worldwide asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market® under the symbol LSTR.


LSTR – Landstar System: Q1 Earnings Insights

Shares of Landstar System (NASDAQ:LSTR) fell in after-market trading after the company reported Q1 results.

Quarterly Results

Earnings per share rose 93.27% over the past year to $2.01, which beat the estimate of $1.63.

Revenue of $1,288,000,000 rose by 38.86% from the same period last year, which beat the estimate of $1,150,000,000.

Looking Ahead

Q2 EPS expected between $2.20 and $2.30.

Q2 revenue expected between $1,400,000,000 and $1,450,000,000.

Technicals

Company’s 52-week high was at $179.50

Company’s 52-week low was at $94.12

Price action over last quarter: Up 21.56%

Company Overview

Landstar System is an asset-light third-party logistics provider focused on over-the-road truck transportation (92% of revenue). It also offers intermodal (3%) and global air and ocean forwarding (3%). The remainder of its revenue stems from warehousing services and premiums from insurance programs offered to captive owner-operators.

LSTR – Landstar to Release Fourth Quarter Results on Wednesday, January 27, 2021

JACKSONVILLE, Fla., Jan. 13, 2021 (GLOBE NEWSWIRE) — Landstar System, Inc. (NASDAQ:LSTR), a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services, announced today it will release its 2020 fourth quarter results after the market closes on Wednesday, January 27, 2021. The Company will hold its quarterly conference call with analysts and investors the following morning, Thursday, January 28, 2021 at 8:00 a.m. ET to discuss the fourth quarter results and current outlook. To access the webcast, visit www.investor.landstar.com; click on “Webcasts”; and then “Landstar’s Fourth Quarter 2020 Earnings Release Conference Call.”
For those unable to participate in the live call, or for those who do not have access to the Internet, the call will be available on telephone replay for 48 hours. The telephone replay number for the U.S. and Canada is (800) 879-5510 and for international calls is (203) 369-3990.About Landstar:Landstar System, Inc. is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market® under the symbol LSTR.