On April 2, 2025, Landstar System, Inc. (LSTR) issued updated first-quarter 2025 guidance, citing issues related to truckload volume, truck revenue per load, variable contribution and insurance and claims expenses. Additionally, a supply chain fraud case has come to light, which is likely to negatively impact LSTR’s earnings.Given this backdrop, the question that naturally arises is: Should investors buy, hold, or sell LSTR stock now? A more in-depth analysis is needed to make that determination. Before div ...

Landstar System, Inc. (LSTR) has updated its first-quarter 2025 guidance, citing issues related to truckload volume, truck revenue per load, variable contribution and insurance and claims expense. Additionally, a supply chain fraud case has come into the limelight, which is likely to affect LSTR’s earnings.Let’s delve deeper.Landstar witnessed a stronger than typical February with respect to the number of loads hauled via truck. This performance more than offset the softness experienced on loads hauled via ...

Company Overview - Landstar System, Inc. (LSTR) is currently facing multiple headwinds, making it an unimpressive investment option [1] - The company is experiencing reduced demand for freight services and increased truck capacity, leading to low shipment volumes and rates [2] Financial Performance - Revenues are expected to remain weak, particularly in the truck transportation segment, with first-quarter 2025 truckloads projected to decline by 2-7% year-over-year [2] - Truck revenue per load is anticipated to decrease by 2% to increase by 3% year-over-year [2] Industry Challenges - The trucking industry is struggling with a persistent driver shortage, as older drivers retire and younger generations show little interest in trucking jobs [3] - LSTR's shares have dropped 18.5% over the past year, while the transportation-truck industry has seen a decline of 37.6% [3] Earnings Estimates - The Zacks Consensus Estimate for current-quarter earnings has been revised down by 18.4% in the past 90 days, with a 14.8% downward revision for the current year [6] - LSTR has a history of disappointing earnings surprises, lagging the Zacks Consensus Estimate in two of the last four quarters with an average miss of 0.65% [7] Industry Ranking - LSTR's industry has a Zacks Industry Rank of 171 out of 248 groups, placing it in the bottom 31% of Zacks industries [9] - The performance of the industry group is crucial, as studies indicate that 50% of a stock's price movement is tied to its industry performance [9]

A month has gone by since the last earnings report for Landstar System (LSTR) . Shares have lost about 6.5% 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 the most recent earnings report in order to get a better handle on the important drivers. Landstar Q4 Earnings Miss EstimatesLandstar's fourt ...

Financial Performance - Total revenue for the fiscal year ended December 28, 2024, was $4,819,245, a decrease of 9.1% compared to $5,303,322 in 2023[228]. - Net income for the fiscal year 2024 was $195,946, down 26.0% from $264,394 in 2023[228]. - Operating income decreased to $248,907 in 2024, a decline of 27.7% from $344,149 in 2023[228]. - The company reported comprehensive income of $190,801 for the fiscal year 2024, down from $272,553 in 2023, a decrease of 30.0%[231]. - External revenue from the transportation logistics segment in 2024 was $4,756,008, compared to $5,230,846 in 2023, reflecting a decline of 9%[323]. - The insurance segment generated total revenue of $120,713 in 2024, a decrease from $140,453 in 2023[323]. - The company reported an increase in insurance and claims costs, with total insurance and claims expenses of $171,405 in 2024, compared to $182,218 in 2023[323]. - Investment income increased to $14,810 in 2024, up from $10,141 in 2023[323]. Assets and Liabilities - Total current assets decreased to $1,319,867 in 2024 from $1,352,741 in 2023, primarily due to a decrease in trade accounts receivable[225]. - Total liabilities decreased slightly to $840,000 in 2024 from $842,000 in 2023, indicating stable financial management[225]. - The company had no borrowings outstanding under the Credit Agreement as of December 28, 2024, maintaining a revolving credit facility of $300,000,000[220]. - The self-insurance claims liability as of December 28, 2024, was estimated at $103,353,000[340]. - As of December 28, 2024, total deferred tax assets increased to $25,108,000 from $22,954,000 in 2023, while total deferred tax liabilities decreased to $42,710,000 from $46,942,000, resulting in a net deferred tax liability of $17,602,000[273]. Shareholder Returns - The company paid dividends of $120,476 in 2024, compared to $117,130 in 2023, representing an increase of 2.0%[234]. - Dividends increased to $3.38 per share in 2024, up from $3.26 per share in 2023, reflecting a growth of 3.68%[236]. - The Company declared a special cash dividend of $2.00 per share, resulting in dividends payable of $70,632,000 as of December 28, 2024[263]. - The Company purchased a total of 452,019 shares of its Common Stock at a total cost of $82.117 million during fiscal year 2024[312]. Stock and Equity - The average basic and diluted shares outstanding decreased to 35,538,000 in 2024 from 35,920,000 in 2023[228]. - The total number of common shares outstanding increased to 68,559,269 in 2024 from 68,497,324 in 2023, reflecting a slight increase of 0.1%[236]. - Total common stock purchases amounted to $82,117,000 in 2024, compared to $54,267,000 in 2023, indicating a significant increase of 51.4%[236]. - The total unrecognized compensation cost related to RSU awards as of December 28, 2024, was $41.9 million, with an expected average remaining life of approximately 3.3 years[303]. Taxation - For the fiscal year 2024, the total current income tax expense was $65,370,000, a decrease from $91,410,000 in 2023[272]. - The Company reported income taxes of $58,380,000 for fiscal year 2024, down from $83,701,000 in 2023, reflecting a decrease of approximately 30%[273]. - Landstar paid income taxes of $47,528,000 in fiscal year 2024, significantly lower than $92,695,000 in fiscal year 2023, marking a decrease of approximately 48.9%[275]. Operational Insights - Truck transportation revenue from BCO Independent Contractors accounted for 38% of consolidated revenue in 2024, consistent with 2023, while Truck Brokerage Carriers contributed 52%, down from 53%[244]. - Van equipment revenue decreased to $2,447,810,000 in 2024 from $2,742,281,000 in 2023, a decline of approximately 10.7%[244]. - The company experienced unfavorable development of prior years' self-insured claims, impacting operating income by $8,824 in 2024[326]. Goodwill and Impairment - The Company performed a qualitative assessment of goodwill in Q4 2024 and determined that the fair value of each reporting unit is likely greater than its carrying amount, thus no quantitative impairment test was necessary[257]. Internal Controls and Audit - The audit report expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 28, 2024[347]. - There were no significant changes in the Company's internal control over financial reporting during the fourth fiscal quarter[354].

Core Insights - The articles emphasize that the content is opinion-based and does not provide investment advice, highlighting the importance of conducting personal research before making investment decisions [1][2][3][4] Group 1 - The author has six years of experience in long-horizon investment portfolio management and consulting, indicating a strong background in financial analysis [1] - There is a clear disclaimer that the author does not hold any positions in the companies mentioned and has no plans to initiate any positions in the near future [2] - The articles stress that past performance is not indicative of future results, reinforcing the need for individual assessment of investment suitability [4]

Core Viewpoint - Landstar System, Inc. reported a decline in earnings per share (EPS) for the fourth quarter of 2024, missing consensus estimates, while revenues showed slight growth year-over-year, indicating mixed performance in the transportation sector. Financial Performance - Fourth-quarter 2024 EPS was $1.31, missing the Zacks Consensus Estimate of $1.36 and down 19.1% year-over-year, within the guided range of $1.25-$1.45 per share [1] - Revenues reached $1.21 billion, surpassing the Zacks Consensus Estimate of $1.19 billion and increasing 0.4% year-over-year, also within the guided range of $1.150-$1.250 billion [1] - Operating income fell 22.5% to $57.77 million compared to the prior-year quarter [2] - Total costs and expenses increased 1.9% to $1.15 billion [2] Segment Performance - Truck transportation segment revenues, contributing 89.8% to total revenues, amounted to $1.08 billion, down 0.4% year-over-year and below expectations of $1.09 billion [3] - Rail intermodal revenues decreased 24.6% to $18.34 million, falling short of expectations of $21.1 million [3] - Revenues from ocean and air-cargo carrier segments improved 37.1% year-over-year to $88.17 million, exceeding expectations of $59.1 million [4] - Other revenues decreased 28.4% year-over-year to $22 million, below expectations of $28.5 million [4] Liquidity and Shareholder Returns - At the end of fourth-quarter 2024, Landstar had cash and cash equivalents of $515.01 million, up from $468.83 million in the prior quarter [5] - Long-term debt totaled $69.19 million, an increase from $44.83 million in the prior quarter [5] - During 2024, Landstar repurchased nearly 452,000 shares for $82.1 million and paid $120.5 million in cash dividends [6] - A quarterly cash dividend of 36 cents per share was declared, payable on March 11, 2025 [6] Guidance - For the first quarter of 2025, Landstar expects revenues in the range of $1.075-$1.175 billion, with the Zacks Consensus Estimate at $1.21 billion [7] - A decline in truckloads of 2-7% year-over-year is anticipated, with truck revenue per load expected to decrease by 2% to increase by 3% year-over-year [7] - EPS guidance for the first quarter is set between $1.05-$1.25 per share, with the Zacks Consensus Estimate at $1.35 [7] - The effective income tax rate is expected to be 24.5% [8] Market Position - Landstar currently holds a Zacks Rank 4 (Sell), indicating a less favorable outlook compared to other stocks in the market [9]

Landstar System, Inc. Earnings Conference Call 4Q 2024 Date 4Q 2024 Forward-Looking Statements Disclaimer The following is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Statements made in this slide presentation that are not based on historical facts are "forward-looking statements." This presentation may make certain statements containing forward-looking statements, such as statements which relate to Landstar's business objectives, plans, strategies and expectations. ...

Core Insights - Landstar System (LSTR) reported revenue of $1.21 billion for the quarter ended December 2024, reflecting a year-over-year increase of 0.4% and a surprise of +0.94% over the Zacks Consensus Estimate of $1.2 billion [1] - The earnings per share (EPS) for the quarter was $1.31, down from $1.62 in the same quarter last year, with an EPS surprise of -3.68% compared to the consensus estimate of $1.36 [1] Revenue and Performance Metrics - Revenue per load for Ocean and air cargo carriers was $10,598, exceeding the average estimate of $8,145.05 [4] - Revenue per load for Rail Intermodal was $2,801, slightly below the average estimate of $2,955 [4] - Total number of loads was 491,410, which was lower than the estimated 501,434 [4] - Truck Transportation loads totaled 476,540, compared to the average estimate of 486,345 [4] - Investment income increased by 17% year-over-year to $3.82 million, surpassing the average estimate of $2.85 million [4] Revenue Breakdown - Revenue from Other sources was $22 million, below the average estimate of $28.26 million, representing a year-over-year decline of 28.4% [4] - Rail Intermodal revenue was $18.35 million, compared to the average estimate of $21.58 million, reflecting a decrease of 24.6% year-over-year [4] - Truck Transportation revenue was $1.08 billion, slightly below the average estimate of $1.09 billion, indicating a year-over-year change of -0.4% [4] - Revenue from Ocean and air cargo carriers was $88.17 million, significantly higher than the estimated $65.60 million, marking a year-over-year increase of 37.2% [4] - Other Truck Transportation revenue was $100.40 million, exceeding the average estimate of $86.70 million, with a year-over-year change of +0.7% [4] - Less-than-truckload revenue was $21.93 million, below the average estimate of $24.68 million, representing a decline of 18.5% year-over-year [4] Stock Performance - Landstar shares have returned +2.4% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Group 1: Earnings Performance - Landstar System reported quarterly earnings of $1.31 per share, missing the Zacks Consensus Estimate of $1.36 per share, and down from $1.62 per share a year ago, representing an earnings surprise of -3.68% [1] - The company posted revenues of $1.21 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.94%, compared to year-ago revenues of $1.2 billion [2] Group 2: Stock Performance and Outlook - Landstar shares have increased by approximately 2.4% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.35 on $1.21 billion in revenues, and for the current fiscal year, it is $6.70 on $5.23 billion in revenues [7] Group 3: Industry Context - The Transportation - Truck industry, to which Landstar belongs, is currently in the bottom 5% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the outlook for the industry can significantly impact stock performance [5][8]