Landstar System (NASDAQ:LSTR) Issues Quarterly Earnings Results

Landstar System (NASDAQ:LSTR) released its quarterly earnings data on Tuesday. The transportation company reported $1.16 earnings per share for the quarter, beating the consensus estimate of $1.11 by $0.05, FiscalAI reports. Landstar System had a net margin of 2.42% and a return on equity of 17.68%. The firm had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.15 billion. During the same quarter in the prior year, the business earned $0.95 EPS. The company’s revenue for the quarter was up 1.6% compared to the same quarter last year.

Here are the key takeaways from Landstar System’s conference call:

• Landstar posted improved profitability in Q1 with revenue ~2% higher YoY, gross profit +14%, variable contribution +7% and EPS +36% (partly affected by a prior‑year fraud charge).
• The unsided/platform/heavy‑haul franchise was a clear outperformer—heavy‑haul revenue was about $134 million, up ~18% YoY, with loadings +6% and revenue per heavy‑haul load +12%.
• BCO metrics show stabilization and improving health: truck count was down only ~2% YoY (much smaller quarterly declines than prior years), trailing 12‑month BCO turnover improved to 29.5%, and BCO utilization increased ~10% YoY.
• Management is aggressively piloting AI and technology (multiple agent pilots and corporate initiatives) to boost quoting, dispatch, tracking and fraud detection, with capital prioritized to AI but rollout and adoption remain execution risks.
• Insurance and claim costs declined (7.5% of BCO revenue vs 9.3% a year ago) due to fewer/severity‑reduced cargo claims and stricter carrier vetting (approved carrier count down ~20%), supporting margin expansion.

Landstar System Stock Up 3.9%

LSTR stock opened at $189.44 on Wednesday. Landstar System has a twelve month low of $119.32 and a twelve month high of $194.00. The company has a quick ratio of 1.75, a current ratio of 1.75 and a debt-to-equity ratio of 0.06. The company has a market cap of $6.44 billion, a PE ratio of 58.19 and a beta of 0.80. The business’s 50-day simple moving average is $160.58 and its 200 day simple moving average is $147.67.

Landstar System Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 9th. Shareholders of record on Tuesday, May 19th will be issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Tuesday, May 19th. Landstar System’s dividend payout ratio is 48.34%.

Landstar System announced that its board has authorized a stock buyback plan on Tuesday, April 28th that authorizes the company to repurchase 1,115,195,000,000 shares. This repurchase authorization authorizes the transportation company to reacquire up to 3.3% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

Institutional Trading of Landstar System

Institutional investors have recently modified their holdings of the company. Boston Partners lifted its position in Landstar System by 24.1% in the third quarter. Boston Partners now owns 1,761,526 shares of the transportation company’s stock worth $216,242,000 after purchasing an additional 341,808 shares during the period. AQR Capital Management LLC increased its holdings in Landstar System by 185.5% in the 4th quarter. AQR Capital Management LLC now owns 987,087 shares of the transportation company’s stock valued at $141,844,000 after buying an additional 641,319 shares during the period. Corient Private Wealth LLC raised its stake in shares of Landstar System by 99.5% in the 4th quarter. Corient Private Wealth LLC now owns 742,215 shares of the transportation company’s stock valued at $105,877,000 after buying an additional 370,253 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its holdings in shares of Landstar System by 19.8% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 706,446 shares of the transportation company’s stock worth $101,516,000 after acquiring an additional 116,619 shares during the period. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Landstar System by 1.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 667,294 shares of the transportation company’s stock worth $95,892,000 after buying an additional 11,881 shares in the last quarter. Institutional investors and hedge funds own 97.95% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on LSTR shares. Susquehanna reaffirmed a “neutral” rating on shares of Landstar System in a research note on Wednesday. Evercore lifted their price objective on Landstar System from $125.00 to $151.00 and gave the company an “in-line” rating in a research report on Monday, January 12th. Truist Financial lowered their target price on Landstar System from $150.00 to $145.00 and set a “hold” rating on the stock in a research note on Thursday, January 29th. JPMorgan Chase & Co. upped their target price on Landstar System from $134.00 to $162.00 and gave the stock a “neutral” rating in a research report on Monday, January 12th. Finally, TD Cowen reaffirmed a “hold” rating on shares of Landstar System in a research note on Friday, January 9th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $158.09.

Landstar System News Summary

Here are the key news stories impacting Landstar System this week:

• Positive Sentiment: Q1 earnings beat — Landstar reported EPS of $1.16 vs. consensus ~$1.11 and revenue of $1.171B (up ~1.6% y/y). Management provided slides/press release with the results. Landstar Q1 Press Release
• Positive Sentiment: Board authorized share repurchases — the board approved a buyback program allowing repurchases equal to roughly 3.3% of outstanding shares, signaling management thinks the stock is attractive at current levels. Buyback Report
• Positive Sentiment: Profitability and cash flow improved — quarter showed big year-over-year gains in gross profit and operating profit, net income +32% y/y, and operating cash flow increased materially, supporting capital returns and buybacks. Quiver Summary
• Neutral Sentiment: Quarterly dividend declared — Landstar set a $0.40 quarterly dividend (annualized yield ~0.9%); record/ex-div date May 19 and payable June 9. This is a modest yield but adds to shareholder returns.
• Neutral Sentiment: Earnings call transcript available — investors can review management commentary and Q&A for guidance and contract/mix details. Earnings Call Transcript
• Negative Sentiment: Top-line growth remains modest and margins thin — revenue grew only ~1.6% y/y and net margin was about 2.4%, and some outlets note revenue was essentially in line with or slightly below some expectations; investors should watch whether growth accelerates in coming quarters. Zacks Analysis

About Landstar System

Landstar System, Inc provides integrated transportation management solutions through a network of independent agents and third-party capacity providers. The company specializes in truckload brokerage, intermodal, air and ocean freight, expedited and heavy-haul services, along with value-added offerings such as cargo insurance, customs brokerage and supply chain management. Landstar’s proprietary technology platform enables real-time load matching, shipment tracking and data analytics to optimize fleet utilization and improve customer service.

Founded in 1968 and headquartered in Jacksonville, Florida, Landstar pioneered an asset-light brokerage model that has evolved into a global logistics operation.