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Landstar's (LSTR) Q1 Outlook Upbeat Despite Ukraine Woes
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Landstar System’s (LSTR - Free Report) operations have considerable exposure to Ukraine. In the wake of Russian invasion of Ukraine, operations of two of LSTR’s agencies have been significantly affected. The two agencies together generated approximately $860 million in revenues, contributing 13% to the company’s top line in 2021.
Per a SEC filing, Landstar estimates a negative impact of approximately $20-$25 million on its truck load revenue per week due to the disruption in its Ukraine-based operations. This implies a potential impact of up to $100 million on LSTR’s revenues in the first quarter of 2022. With this, first-quarter earnings are likely to be dented to the tune of up to 18 cents per share. The company is unable to ascertain the magnitude of disruption on the operations of the two independent commission sales agencies for the subsequent quarters.
Despite the uncertainties, Landstar is ahead of its first-quarter 2022 guidance issued in January. Through the first eight weeks of the ongoing quarter, LSTR’s revenue per load on loads hauled via truck increased 27% year over year, compared with the first-quarter guided range of an increase of 14-17%. Number of loads hauled via truck surged 24% year over year in the first eight weeks of the current quarter, ahead of the forecast of a 12-14% increase in the first quarter.
Given this healthy trend, Landstar expects revenues for the first quarter to exceed the high end of the guided range of $1.70-$1.75 billion in mid-single-digit percentage range, even if it assumes “complete disruption of the Ukrainian-based operations of these two agencies through the remainder of the first quarter." Earnings per share for the period is also anticipated to exceed the high end of the guided range of $2.70-$2.80 in low double-digit percentage range.
ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 31.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest have surged more than 44% in a year.
J.B. Hunt Transport Services (JBHT - Free Report) sports a Zacks Rank #1. The company’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.2%.
Shares of J.B. Hunt have rallied more than 34% in a year.
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Landstar's (LSTR) Q1 Outlook Upbeat Despite Ukraine Woes
Landstar System’s (LSTR - Free Report) operations have considerable exposure to Ukraine. In the wake of Russian invasion of Ukraine, operations of two of LSTR’s agencies have been significantly affected. The two agencies together generated approximately $860 million in revenues, contributing 13% to the company’s top line in 2021.
Per a SEC filing, Landstar estimates a negative impact of approximately $20-$25 million on its truck load revenue per week due to the disruption in its Ukraine-based operations. This implies a potential impact of up to $100 million on LSTR’s revenues in the first quarter of 2022. With this, first-quarter earnings are likely to be dented to the tune of up to 18 cents per share. The company is unable to ascertain the magnitude of disruption on the operations of the two independent commission sales agencies for the subsequent quarters.
Despite the uncertainties, Landstar is ahead of its first-quarter 2022 guidance issued in January. Through the first eight weeks of the ongoing quarter, LSTR’s revenue per load on loads hauled via truck increased 27% year over year, compared with the first-quarter guided range of an increase of 14-17%. Number of loads hauled via truck surged 24% year over year in the first eight weeks of the current quarter, ahead of the forecast of a 12-14% increase in the first quarter.
Landstar System, Inc. Price
Landstar System, Inc. price | Landstar System, Inc. Quote
Given this healthy trend, Landstar expects revenues for the first quarter to exceed the high end of the guided range of $1.70-$1.75 billion in mid-single-digit percentage range, even if it assumes “complete disruption of the Ukrainian-based operations of these two agencies through the remainder of the first quarter." Earnings per share for the period is also anticipated to exceed the high end of the guided range of $2.70-$2.80 in low double-digit percentage range.
Zacks Rank & Key Picks
Landstar carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Transportation - Truck industry are as follows:
ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 31.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest have surged more than 44% in a year.
J.B. Hunt Transport Services (JBHT - Free Report) sports a Zacks Rank #1. The company’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.2%.
Shares of J.B. Hunt have rallied more than 34% in a year.