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Landstar (LSTR) Up 3.8% Since Q1 Earnings Beat & Rosy View

Zacks Equity Research
·4-min read

Landstar System, Inc.’s LSTR first-quarter 2022 earnings of $3.34 per share surpassed the Zacks Consensus Estimate of $3.10. The bottom line surged 66.2% year over year on higher revenues.

Revenues of $1,970.6 million also outperformed the Zacks Consensus Estimate of $1,850 million. The top line soared 53% year over year owing to strong performances of the truck transportation, rail intermodal, and ocean and air-cargo carrier segments.

The top and the bottom-line beat in the first quarter as well as a strong second-quarter 2022 guidance pleased investors. Earnings per share for the June quarter are estimated in the band of $3.22-$3.32. The Zacks Consensus Estimate for the same is currently pegged at $2.79 per share. As a result, the stock has gained 3.8% since the earnings announcement on Apr 20.

Gross profit came in at $214.6 million in the reported quarter, up 46% year over year. Operating income surged 57.6% from the prior-year quarter’s figure to $162.8 million. Total costs and expenses (on a reported basis) increased 42.6% to $1.8 billion.

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Total revenues in the truck transportation segment — contributing to 88.9% of the top line — amounted to $1.75 billion, up 45.8% from the year-ago quarter’s figure. Within the truck transportation segment, revenues hauled via van equipment rose 48% to $1.08 billion. Truckload transportation revenues hauled via unsided/platform equipment climbed 37% to $408.8 million.

Less-than-truckload revenues increased 31% to $33.7 million. Overall, first-quarter truck transportation revenue per load rose 22.5% year over year.

Landstar System, Inc. Price, Consensus and EPS Surprise

Landstar System, Inc. Price, Consensus and EPS Surprise
Landstar System, Inc. Price, Consensus and EPS Surprise

Landstar System, Inc. price-consensus-eps-surprise-chart | Landstar System, Inc. Quote

Rail intermodal revenues of $42.7 million increased 34.7% from the figure recorded in first-quarter 2021. Revenues in the ocean and air-cargo carrier segments skyrocketed in excess of 100% year over year to $152.1 million. Other revenues increased 67.3% to $24.6 million.

Liquidity

At the end of the first quarter of 2022, Landstar, currently carrying a Zacks Rank #3 (Hold), had cash and cash equivalents of $146 million compared with $215.5 million recorded at the end of 2021. Additionally, long-term debt (excluding current maturities) totaled $137.3 million at the end of the March quarter of 2022 compared with $75.2 million at the end of 2021. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Aspects of Q222 Outlook

Landstar anticipates second-quarter 2022 revenues in the range of $2.0-$2.05 billion. The Zacks Consensus Estimate for the metric currently stands at $1.82 billion.

Revenue per load on loads hauled via truck in the second quarter of 2022 is expected in a mid-teen percentage range above the second-quarter 2021 reported figure.

Earnings Snapshots

Within the broader Transportation sector, J.B. Hunt Transport Services JBHT, CSX Corporation CSX and United Airlines UAL recently reported first-quarter 2022 results.

J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.

Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year. JBHT currently carries a Zacks Rank #3.

CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.

Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year. CSX carries a Zacks Rank of 3 at present.

United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss suffered by UAL as coronavirus woes continue to dwindle air-travel demand.

Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million. UAL is presently Zacks #3 Ranked.


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Landstar System, Inc. (LSTR) : Free Stock Analysis Report

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