U.S. stock futures slip lower; Cook’s firing increases Fed independence worries
On Thursday, Goldman Sachs reiterated a Sell rating on Landstar System (NASDAQ:LSTR) with a steady price target of $150.00, close to the current trading price of $151.93. The firm’s analyst, Jordan Alliger, provided insights following Landstar’s analyst meeting held on April 2, 2025. With an overall analyst consensus of Hold and trading near its 52-week low, InvestingPro analysis suggests the stock is fairly valued. During the meeting, Landstar updated its earnings guidance for the first quarter of 2025. The company now expects its revenue to be around the midpoint of the previously estimated range of $1.075 billion to $1.175 billion. Despite maintaining a strong Altman Z-Score of 9.71 and offering a 2.26% dividend yield, higher than anticipated insurance and claims costs led Landstar to predict its earnings per share (EPS) for the quarter to fall between $0.90 and $0.95, a decrease from the earlier forecast of $1.05 to $1.25.
The revision in guidance is attributed to a 4% decline in loads during the first eight weeks of the first quarter, while revenue per load remained flat year-over-year. In March, the number of loads per truck aligned with the usual trend from February to March, but revenue per load did not meet seasonal expectations. The management team pointed out a 6% reduction in loads using van equipment and a 2% drop in revenue per load for the initial eight weeks of the quarter, underscoring the ongoing difficulties in the truckload (TL) sector.
Goldman Sachs analyst noted the management’s emphasis on the challenging environment in the TL industry. The firm anticipates that the number of loads will likely reach the higher end of Landstar’s guidance, nearing a 2% decrease, with revenue per load expected to be flat or possibly down by 1%. This outlook reflects the pressures faced by Landstar System amidst a competitive and shifting market landscape. For deeper insights into Landstar’s financial health and growth prospects, including exclusive ProTips and comprehensive valuation metrics, explore the detailed Pro Research Report available on InvestingPro.
In other recent news, Landstar System Inc. reported its fourth-quarter 2024 earnings, revealing a slight miss on earnings per share (EPS) forecasts. The company’s EPS came in at $1.31, below the anticipated $1.36, while revenue slightly exceeded expectations at $1.21 billion against a forecast of $1.2 billion. Despite the earnings miss, revenue growth was driven by strong performance in Landstar’s heavy haul services. Analysts have noted the company’s mixed financial results, with some expressing concern over the EPS shortfall. In terms of future guidance, Landstar anticipates revenue between $1.075 billion and $1.175 billion for the first quarter of 2025, with expected EPS ranging from $1.05 to $1.25. The company projects a potential decline in truckload volumes but expects variability in truck revenue per load. Landstar’s management remains cautiously optimistic about market conditions improving steadily throughout the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.