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Landstar (LSTR) Up 0.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Landstar System (LSTR - Free Report) . Shares have added about 0.4% in that time frame, underperforming the S&P 500.
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 the most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat at Landstar in Q3
Landstar System’s earnings of $2.58 per share surpassed the Zacks Consensus Estimate of $2.50. The bottom line surged 60.3% year over year on higher revenues. Revenues of $1,734.3 million also outperformed the Zacks Consensus Estimate of $1,695.2 million. The top line soared 59.8% year over year owing to strong performances of the truck transportation, rail intermodal, and ocean and air-cargo carriers segments.
Gross profit came in at $189.2 million in the reported quarter, up 57.9% year over year. Operating income soared 60% from the prior-year quarter’s figure to $131.4 million. Total costs and expenses (on a reported basis) increased 60% to $1.6 billion.
Total revenues in the truck transportation segment — contributing to 91.3% of the top line — amounted to $1.58 billion, up 58% from the year-ago quarter’s figure. Within the truck transportation segment, revenues hauled via van equipment rose 58.8% to $918.2 million. Truckload transportation revenues hauled via unsided/platform equipment climbed 43.4% to $422.9 million.
Less-than-truckload revenues increased 22.7% to $30.8 million. Overall third-quarter truck transportation revenue per load rose 29% year over year.
Rail intermodal revenues of $44.5 million increased 46.1% from the figure recorded in third-quarter 2020. Revenues in the ocean and air cargo carriers segment surged in excess of 100% year over year to $84.1 million. Other revenues increased 45.4% to $25 million.
Liquidity
At the end of the third quarter, Landstar had cash and cash equivalents of $230.56 million compared with $249.35 million recorded at the end of 2020. Additionally, long-term debt (excluding current maturities) totaled $62.72 million at the end of the third quarter compared with $65.36 million at the end of 2020.
Q4 Outlook
Landstar anticipates fourth-quarter 2021 revenues in the range of $1.70-$1.75 billion. Earnings per share are estimated in the band of $2.55-$2.65.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 11.49% due to these changes.
VGM Scores
Currently, Landstar has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Landstar has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Landstar (LSTR) Up 0.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Landstar System (LSTR - Free Report) . Shares have added about 0.4% in that time frame, underperforming the S&P 500.
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 the most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat at Landstar in Q3
Landstar System’s earnings of $2.58 per share surpassed the Zacks Consensus Estimate of $2.50. The bottom line surged 60.3% year over year on higher revenues. Revenues of $1,734.3 million also outperformed the Zacks Consensus Estimate of $1,695.2 million. The top line soared 59.8% year over year owing to strong performances of the truck transportation, rail intermodal, and ocean and air-cargo carriers segments.
Gross profit came in at $189.2 million in the reported quarter, up 57.9% year over year. Operating income soared 60% from the prior-year quarter’s figure to $131.4 million. Total costs and expenses (on a reported basis) increased 60% to $1.6 billion.
Total revenues in the truck transportation segment — contributing to 91.3% of the top line — amounted to $1.58 billion, up 58% from the year-ago quarter’s figure. Within the truck transportation segment, revenues hauled via van equipment rose 58.8% to $918.2 million. Truckload transportation revenues hauled via unsided/platform equipment climbed 43.4% to $422.9 million.
Less-than-truckload revenues increased 22.7% to $30.8 million. Overall third-quarter truck transportation revenue per load rose 29% year over year.
Rail intermodal revenues of $44.5 million increased 46.1% from the figure recorded in third-quarter 2020. Revenues in the ocean and air cargo carriers segment surged in excess of 100% year over year to $84.1 million. Other revenues increased 45.4% to $25 million.
Liquidity
At the end of the third quarter, Landstar had cash and cash equivalents of $230.56 million compared with $249.35 million recorded at the end of 2020. Additionally, long-term debt (excluding current maturities) totaled $62.72 million at the end of the third quarter compared with $65.36 million at the end of 2020.
Q4 Outlook
Landstar anticipates fourth-quarter 2021 revenues in the range of $1.70-$1.75 billion. Earnings per share are estimated in the band of $2.55-$2.65.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 11.49% due to these changes.
VGM Scores
Currently, Landstar has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Landstar has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.