Landstar System(US:LSTR) ZACKSยท2024-07-02 09:11Core Viewpoint - Landstar System, Inc. (LSTR) is currently facing multiple headwinds that negatively impact its investment attractiveness, including declining earnings expectations and weak freight conditions [8]. Earnings Expectations - For the second quarter of 2024, LSTR's earnings are projected to decline by 20.54% year over year, while for the full year 2024, a decline of 14.27% is expected [3]. - The Zacks Consensus Estimate for second-quarter 2024 earnings has been revised downward by 11.9% over the past 90 days, and the consensus for 2024 earnings has decreased by 7.5% in the same timeframe [8]. Industry Challenges - The trucking industry is experiencing significant challenges, including driver shortages as older drivers retire and younger generations show less interest in the profession [4]. - Weak freight conditions and supply chain issues are contributing to a decline in overall volumes, adversely affecting LSTR's top line [4]. Price Performance - LSTR shares have decreased by 4.6% over the past year, contrasting with the industry's growth of 0.5% [9]. - The company anticipates a decline in truck loads for the second quarter of 2024 in the range of 5-9% year over year, with truck revenue per load expected to decrease between 0% and 4% year over year [9]. Comparisons with Peers - In the Zacks Transportation sector, GATX Corporation and Trinity Industries, Inc. are better-ranked stocks, both carrying a Zacks Rank 2 (Buy) [5]. - GATX's expected earnings growth rate for 2024 is 6.79%, with shares rising by 18.4% in the past year [6]. - Trinity Industries has raised its 2024 earnings per share guidance to a range of $1.35 to $1.55, up from a previous range of $1.30 to $1.50 [12].