Why Is Landstar (LSTR) Down 4.2% Since Last Earnings Report?

Core Viewpoint - Landstar System (LSTR) has experienced a decline of approximately 4.2% in share price since its last earnings report, underperforming the S&P 500, raising questions about its future performance leading up to the next earnings release [1] Financial Performance - In Q2, Landstar reported earnings per share of $1.48, surpassing the Zacks Consensus Estimate of $1.46, but reflecting a 20% decrease year over year [2] - Revenues totaled $1.225 billion, falling short of the Zacks Consensus Estimate of $1.255 billion and declining by 10.8% year over year [2] - Operating income decreased by 22.6% to $68.05 million compared to the prior-year quarter [2] - Total costs and expenses decreased by 9.9% to $1.160 billion [2] Segment Performance - The truck transportation segment, which accounts for 90.2% of total revenues, generated $1.105 billion, down 11.3% from the previous year [3] - Rail intermodal revenues decreased by 11.5% to $22.30 million [3] - Revenues from ocean and air-cargo carrier segments fell by 5.5% to $71.30 million [3] - Other revenues decreased by 2% to $25.70 million [3] Liquidity and Shareholder Returns - As of the end of Q2 2024, Landstar had cash and cash equivalents of $438.06 million, down from $467.67 million in the previous quarter [4] - Long-term debt increased to $45.39 million from $38.49 million in the prior quarter [4] - During Q2 2024, Landstar repurchased nearly 316,000 shares for $57 million and has authorization to buy an additional 2,684,000 shares [5] Estimate Trends - There has been a downward trend in earnings estimates, with the consensus estimate shifting down by 11.91% over the past month [6] - Landstar currently holds a Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [8] Industry Comparison - Landstar operates within the Zacks Transportation - Truck industry, where competitor JB Hunt (JBHT) has seen a slight gain of 0.6% over the past month [8] - JB Hunt reported revenues of $2.93 billion, reflecting a year-over-year decline of 6.5%, with EPS dropping from $1.81 to $1.32 [9]