A month has gone by since the last earnings report for Landstar System (LSTR). Shares have added about 5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Landstar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Landstar Q3 Earnings Miss Estimates
Landstar's third-quarter 2025 earnings per share of $1.22 missed the Zacks Consensus Estimate of $1.24 and fell 13.5% year over year. Revenues of $1.21 billion marginally surpassed the Zacks Consensus Estimate of $1.20 billion but declined 0.4% year over year.
Operating income fell 58.3% from the prior-year quarter’s figure to $26.32 million. Total costs and expenses (on a reported basis) rose 2.4% to $1.18 billion.
LSTR’s Q3 Segmental Details
Total revenues in the truck transportation segment — contributing to 90.4% of the top line — amounted to $1.08 billion, down 0.1% from the year-ago quarter’s figure. The reported figure was below our expectations of $1.09 billion.
Rail intermodal revenues of $23.66 million rose 12.8% from the figure recorded in second-quarter 2024. The reported figure was above our expectations of $20.8 million.
Revenues in the ocean and air-cargo carrier segments fell 5.3% year over year to $72.27 million. The reported figure was below our expectations of $77.8 million.
Other revenues decreased 22.9% to $19.57 million. The reported figure was below our expectations of $20.6 million.
Liquidity, Dividends & Buyback
At the end of third-quarter 2025, Landstar had cash and cash equivalents of $375.19 million compared with $359.23 million recorded at the prior-quarter end. Additionally, long-term debt (excluding current maturities) totaled $47.70 million at the end of the third quarter compared with $54.67 million at the prior-quarter end.
During the third quarter of 2025, Landstar purchased 308,709 shares for $40.6 million. LSTR is currently authorized to purchase up to an additional 1,552,813 shares under its longstanding share purchase program.
Landstar’s board of directors also announced a quarterly cash dividend of 40 cents per share payable on Dec. 9, 2025, to stockholders of record as of the close of business on Nov. 18, 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Landstar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has 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 C. 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 2.9%. The company reported its results for the quarter ended September 2025 more than a month ago.
Knight-Swift reported revenues of $1.93 billion in the last reported quarter, representing a year-over-year change of +2.7%. EPS of $0.32 for the same period compares with $0.34 a year ago.
For the current quarter, Knight-Swift is expected to post earnings of $0.38 per share, indicating a change of +5.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
Knight-Swift has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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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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