Landstar System, Inc. (LSTR Quick QuoteLSTR - Free Report) first-quarter 2025 earnings per share (EPS) of 85 cents missed the Zacks Consensus Estimate of 92 cents and declined 35.6% year over year. The reported figure for the quarter lies below the guided range of 90-95 cents per share.

Revenues of $1.15 billion surpassed the Zacks Consensus Estimate of $1.13 billion but declined 1.5% year over year. The reported figure for the quarter lies above LSTR’s expectation to be at or near the midpoint of the previously guided range of $1.075-$1.175 billion.

Landstar president and chief executive officer, Frank Lonegro, stated, “I was encouraged by the number of loads hauled via truck in the quarter. Importantly, this was the first time in fifteen years that the number of loads hauled via truck during the first quarter exceeded the immediately preceding fourth quarter. Our network of Landstar BCOs, agents and employees are laser-focused on safety, security and delivering great service to our customers in an extremely fluid freight transportation environment.”

Operating income fell 34.2% from the prior-year quarter’s figure to $39.4 million. Total costs and expenses (on a reported basis) increased marginally by 0.1% to $1.12 billion.

LSTR’s Q1 Segmental Details

Total revenues in the truck transportation segment — contributing to 89.8% of the top line — amounted to $1.05 billion, down 1.8% from the year-ago quarter’s figure. The reported figure was above our expectations of $1.01 billion.

Rail intermodal revenues of $17.48 million decreased 22.9 % from the figure recorded in first-quarter 2024. The reported figure was below our expectations of $24.1 million.

Revenues in the ocean and air-cargo carrier segments improved 21.4% year over year to $65.63 million. The reported figure was above our expectations of $58.7 million.

Other revenues decreased 22.4% year over year to $19.66 million. The reported figure was below our expectations of $25.7 million.

Liquidity, Dividends & Buyback

At the end of first-quarter 2025, Landstar had cash and cash equivalents of $417.42 million compared with $515.01 million recorded at the prior-quarter end. Additionally, long-term debt (excluding current maturities) totaled $61.9 million at the end of the first quarter compared with $69.1 million at the prior-quarter end.

During the first quarter of 2025, Landstar purchased almost 386,000 shares for $60.9 million and paid $83.3 million to shareholders in the form of cash dividends. LSTR is currently authorized to purchase up to an additional 2,161,663 shares under its longstanding share purchase program.  

Landstar’s board of directors also announced a dividend hike of 11%, thereby raising the quarterly cash dividend to 40 cents per share from 36 cents per share. The raised dividend will be paid on June 24, 2025, to shareholders of record as of the close of business on June 5, 2025.

LSTR’s Zacks Rank

Currently, Landstar carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Sectoral Player to Report Q1 results

We note that another player from the broader Zacks Transportation sector, ZIM Integrated Shipping Services Ltd. (ZIM Quick QuoteZIM - Free Report) , will report its first-quarter earnings numbers later this month. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

ZIM is scheduled to report first-quarter 2025 earnings on May 19. ZIM’s quarterly performance is likely to have been aided by continued fleet expansion initiatives. Reduced container availability due to tensions in the Red Sea is expected to lead to increased freight costs. This is anticipated to have benefited ZIM, which provides services to ports in the East Mediterranean and Israel. Revenues and carried volumes are expected to have surged due to the disruptions. Lower capacity is anticipated to have boosted earnings.

ZIM’s bottom-line performance is likely to have been hit by escalated voyage operating costs. High labor costs are also likely to have been a spoilsport. Geopolitical risks pose operational challenges and might hurt results. An update on the tariff concerns is also expected on the fourth-quarter conference call. We expect an update from management on the current tariff-related scenario.

ZIM has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters, missing the mark in the remaining quarter. The average beat is 19.32%.

Q1 Performances of Other Transportation Companies

United Airlines

United Airlines’ (UAL Quick QuoteUAL - Free Report) first-quarter 2025 earnings per share (excluding 25 cents from non-recurring items) of 91 cents surpassed the Zacks Consensus Estimate of 75 cents. In the year-ago quarter, the Chicago-based airline reported a loss of 15 cents per share. 

Operating revenues of $13.21 billion fell marginally short of the Zacks Consensus Estimate of $13.22 billion. The top line increased 5.4% year over year despite the tariff-induced slowdown in domestic air travel demand. Passenger revenues (which accounted for 89.7% of the top line) rose 4.8% to $11.9 billion. UAL flights transported 40,806 passengers in the first quarter, up 3.8% year over year.

Delta Air Lines

Delta Air Lines(DAL Quick QuoteDAL - Free Report) reported first-quarter 2025 earnings (excluding 9 cents from non-recurring items) of 46 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents. Earnings increased 2.2% on a year-over-year basis due to low fuel costs.

Revenues in the March-end quarter were $14.04 billion, surpassing the Zacks Consensus Estimate of $13.81 billion and increasing 2.1% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) rose 3.3% year over year to $13 billion.