It has been about a month since the last earnings report for Landstar System (LSTR). Shares have lost about 0.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Landstar due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Landstar System, Inc. before we dive into how investors and analysts have reacted as of late.
Landstar Q2 Earnings Beat Estimates
Landstar's second-quarter 2025 earnings per share of $1.20 beat the Zacks Consensus Estimate of $1.16 but fell 18.9% year over year. Revenues of $1.21 billion marginally surpassed the Zacks Consensus Estimate of $1.20 billion but declined 1.1% year over year.
Landstar's revenue performance in the second quarter witnessed truck revenue per load improving by 2.6% year over year, partially offset by a 1.5% decrease in the number of loads hauled via truck over the same period.
The 2.6% uptick in truck revenue per load was owing to a 3.2% increase in revenue per load on loads hauled by unsided platform equipment and by a 1.2% increase in revenue per load on loads hauled via van equipment.
Operating income fell 17.3% from the prior-year quarter’s figure to $56.28 million. Total costs and expenses (on a reported basis) fell marginally by 0.1% to $1.15 billion.
LSTR’s Q2 Segmental Details
Total revenues in the truck transportation segment — contributing to 89.8% of the top line — amounted to $1.11 billion, up 1.1% from the year-ago quarter’s figure. The reported figure was above our expectations of $1.09 billion.
Rail intermodal revenues of $22.02 million fell 1.3% from the figure recorded in second-quarter 2024. The reported figure was above our expectations of $21.7 million.
Revenues in the ocean and air-cargo carrier segments fell 28.7% year over year to $50.78 million. The reported figure was below our expectations of $72.1 million.
Other revenues decreased 20.5% to $20.42 million. The reported figure was below our expectations of $22 million.
Liquidity, Dividends & Buyback
At the end of second-quarter 2025, Landstar had cash and cash equivalents of $359.23 million compared with $417.42 million recorded at the prior-quarter end. Additionally, long-term debt (excluding current maturities) totaled $54.67 million at the end of the second quarter compared with $61.9 million at the prior-quarter end.
During the second quarter of 2025, Landstar purchased 300,141 shares for $42.4 million. LSTR is currently authorized to purchase up to an additional 1,861,522 shares under its longstanding share purchase program.
Landstar’s board of directorsalsoannounced a quarterly cash dividend of 40 cents per share payable on Sep 9, 2025, to stockholders of record as of the close of business on Aug 19, 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -6.74% due to these changes.
VGM Scores
Currently, Landstar has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Landstar has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Landstar is part of the Zacks Transportation - Truck industry. Over the past month, Knight-Swift Transportation Holdings (KNX), a stock from the same industry, has gained 4.4%. The company reported its results for the quarter ended June 2025 more than a month ago.
Knight-Swift reported revenues of $1.86 billion in the last reported quarter, representing a year-over-year change of +0.8%. EPS of $0.35 for the same period compares with $0.24 a year ago.
Knight-Swift is expected to post earnings of $0.40 per share for the current quarter, representing a year-over-year change of +17.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
Knight-Swift has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Landstar System, Inc. (LSTR): Free Stock Analysis Report Knight-Swift Transportation Holdings Inc. (KNX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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