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Why Is Landstar (LSTR) Down 0.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Landstar System (LSTR - Free Report) . Shares have lost about 0.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Landstar due for a breakout? 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 catalysts.
Earnings Beat at Landstar in Q1
Landstar's earnings of $2.01 per share surpassed the Zacks Consensus estimate of $1.61. The bottom line also surged 93.3% year over year on higher revenues.
Revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million and also jumped 38.8% year over year. The top line benefited from strong performances of the truck transportation, rail intermodal, and ocean and air cargo carriers segments.
Detailed Statistics
Gross profit (revenues excluding the cost of purchased transportation and commissions to agents) came in at $189.2 million in the reported quarter, up 32% year over year.
Further, operating income soared 91.2% from the prior-year quarter’s figure to $103.3 million. Total costs and expenses (on a reported basis) increased 35.5% to $1.2 billion.
Total revenues in the truck transportation segment — contributing 92.7% to the top line — amounted to $1.20 billion, up 39.7% from the year-ago quarter’s figure. Within the truck transportation segment, truckload transportation revenues hauled via van equipment rose 51.7% to $827.2 million. Additionally, truckload transportation revenues hauled via unsided/platform equipment climbed 18.9% to $340.6 million.
Less-than-truckload revenues increased 12.2% to $25.7 million. Overall first-quarter truck transportation revenue per load rose 23.6% year over year.
Rail intermodal revenues of $31.7 million increased 12.8% from the figure recorded in first-quarter 2020. Moreover, revenues in the ocean and air cargo carriers segment surged 78.9% year over year to $47.6 million. Other revenues, however, declined 19.4% to $14.7 million.
Liquidity
At the end of the first quarter, Landstar had cash and cash equivalents of $219.4 million compared with $249.35 million recorded at the end of 2020. Additionally, long-term debt (excluding current maturities) totaled $58.2 million at the end of the first quarter compared with $65.36 million at the end of 2020.
Q2 Outlook
The company forecasts earnings per share in the band of $2.20-$2.30 for the second quarter of 2021. Anticipating favorable market conditions to continue in the second quarter as well, Landstar expects revenues in the range of $1.40-$1.45 billion.
Further, Landstar predicts both revenue per load and the number of loads hauled via truck in a mid-single digit percentage range above the 2021 first quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 35.4% due to these changes.
VGM Scores
At this time, Landstar has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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 #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Landstar (LSTR) Down 0.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Landstar System (LSTR - Free Report) . Shares have lost about 0.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Landstar due for a breakout? 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 catalysts.
Earnings Beat at Landstar in Q1
Landstar's earnings of $2.01 per share surpassed the Zacks Consensus estimate of $1.61. The bottom line also surged 93.3% year over year on higher revenues.
Revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million and also jumped 38.8% year over year. The top line benefited from strong performances of the truck transportation, rail intermodal, and ocean and air cargo carriers segments.
Detailed Statistics
Gross profit (revenues excluding the cost of purchased transportation and commissions to agents) came in at $189.2 million in the reported quarter, up 32% year over year.
Further, operating income soared 91.2% from the prior-year quarter’s figure to $103.3 million. Total costs and expenses (on a reported basis) increased 35.5% to $1.2 billion.
Total revenues in the truck transportation segment — contributing 92.7% to the top line — amounted to $1.20 billion, up 39.7% from the year-ago quarter’s figure. Within the truck transportation segment, truckload transportation revenues hauled via van equipment rose 51.7% to $827.2 million. Additionally, truckload transportation revenues hauled via unsided/platform equipment climbed 18.9% to $340.6 million.
Less-than-truckload revenues increased 12.2% to $25.7 million. Overall first-quarter truck transportation revenue per load rose 23.6% year over year.
Rail intermodal revenues of $31.7 million increased 12.8% from the figure recorded in first-quarter 2020. Moreover, revenues in the ocean and air cargo carriers segment surged 78.9% year over year to $47.6 million. Other revenues, however, declined 19.4% to $14.7 million.
Liquidity
At the end of the first quarter, Landstar had cash and cash equivalents of $219.4 million compared with $249.35 million recorded at the end of 2020. Additionally, long-term debt (excluding current maturities) totaled $58.2 million at the end of the first quarter compared with $65.36 million at the end of 2020.
Q2 Outlook
The company forecasts earnings per share in the band of $2.20-$2.30 for the second quarter of 2021. Anticipating favorable market conditions to continue in the second quarter as well, Landstar expects revenues in the range of $1.40-$1.45 billion.
Further, Landstar predicts both revenue per load and the number of loads hauled via truck in a mid-single digit percentage range above the 2021 first quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 35.4% due to these changes.
VGM Scores
At this time, Landstar has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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 #1 (Strong Buy). We expect an above average return from the stock in the next few months.