Landstar (LSTR) Up 1% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Landstar System's recent earnings report shows a decline in both earnings and revenues year over year, raising concerns about future performance as estimates trend downward [2][8]. Financial Performance - Q1 2024 earnings per share (EPS) were $1.32, exceeding the Zacks Consensus Estimate of $1.28 but down 39.2% from the previous year [2] - Revenues for Q1 2024 reached $1,171 million, surpassing the Zacks Consensus Estimate of $1,119.5 million but reflecting an 18.4% decline year over year [2] - Operating income fell 40.8% to $59.96 million compared to the prior-year quarter [2] - Total costs and expenses decreased 16.6% to $1,114.49 million [2] Segment Performance - Truck transportation segment revenues, which account for 91.2% of total revenues, were $1,068.93 million, down 19.2% from the same quarter last year [3] - Rail intermodal revenues decreased 11.5% to $22.69 million year over year [3] - Ocean and air-cargo carrier segment revenues declined 11.5% to $54.07 million [3] - Other revenues saw a slight increase of 0.4% to $25.34 million [3] Liquidity and Capital Management - As of the end of Q1 2024, Landstar had cash and cash equivalents of $467.67 million, down from $481.04 million at the end of the previous quarter [4] - Long-term debt (excluding current maturities) was $38.49 million, reduced from $43.26 million in the prior quarter [4] Dividends - The board of directors declared a quarterly dividend of 33 cents per share, payable on May 24, 2024, to stockholders of record as of May 8, 2024 [5] Estimate Trends - There has been a downward trend in estimates, with the consensus estimate shifting down by 9.64% [6] - The stock currently holds a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [8] VGM Scores - Landstar has a Growth Score of A but a low Momentum Score of F, and a Value Score of D, placing it in the bottom 40% for this investment strategy [7] - The overall aggregate VGM Score is C, which is relevant for investors not focused on a single strategy [7]