Landstar Q4 Earnings Miss Estimates, Decrease Year Over Year

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]