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Landstar System , Inc. (NASDAQ:LSTR) stock has reached a new 52-week low, touching down at $144.09. According to InvestingPro data, the company maintains strong fundamentals with more cash than debt on its balance sheet and a healthy current ratio of 1.96x. This latest price movement reflects a significant downturn for the company, which has seen its stock value decrease by 22.78% over the past year. While investors are closely monitoring Landstar’s performance, the company has demonstrated resilience through its 21-year streak of consistent dividend payments and five consecutive years of dividend increases. InvestingPro analysis reveals 8 additional key insights about LSTR’s financial health and market position. The transportation services provider’s stock has been under pressure, and market participants are keenly observing how the company will address the factors contributing to this decline in order to regain its footing in the market. Despite current challenges, Landstar maintains a solid gross profit margin of 20.17% and analysts predict continued profitability this year.
In other recent news, Landstar System has updated its earnings and revenue guidance for the first quarter of 2025. The company now expects revenue to be around the midpoint of the previously estimated range of $1.075 billion to $1.175 billion, with earnings per share (EPS) projected to fall between $0.90 and $0.95, a decrease from the earlier forecast of $1.05 to $1.25. This revision is partly due to higher-than-expected insurance and claims costs, exacerbated by an increase in cargo theft and truck accident claims. Additionally, a significant supply chain fraud, currently under investigation, is expected to impact EPS negatively by $0.35 to $0.50.
Benchmark has maintained its Hold rating on Landstar, reflecting ongoing scrutiny of the company’s financial outlook. Truist Securities also kept a Hold rating while lowering its price target to $150 from $160, citing increased insurance costs and limited potential for margin expansion. Meanwhile, Goldman Sachs reiterated its Sell rating with a price target of $150, highlighting continued challenges in the truckload sector.
The company’s fourth-quarter 2024 earnings report showed a slight miss on EPS forecasts, with earnings at $1.31 compared to the anticipated $1.36. However, revenue slightly exceeded expectations at $1.21 billion, driven by strong performance in heavy haul services. Despite these challenges, Landstar remains committed to shareholder returns, having repurchased approximately 386,000 shares for $60 million in the first quarter of 2025.
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