Landstar System Earnings: Here’s Why Shares are Down Now

Landstar System Inc. (NASDAQ:LSTR) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.71%.

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Landstar System Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 0% to $0.57 in the quarter versus EPS of $0.57 in the year-earlier quarter.

Revenue: Decreased 3.19% to $628.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Landstar System Inc. reported adjusted EPS income of $0.57 per share. By that measure, the company missed the mean analyst estimate of $0.57. It missed the average revenue estimate of $648.56 million.

Quoting Management: Commenting on Landstar’s 2013 first quarter performance, Landstar Chairman, President and CEO, Henry Gerkens said, “Diluted earnings per share was $0.57 in the 2013 first quarter, matching the first quarter record of $0.57, which was set last year. Operating margin in the 2013 first quarter of 42.3 percent was the highest first quarter operating margin in Landstar history. The Company’s annual agent meeting was held in the 2013 second quarter versus in the 2012 first quarter, which resulted in a favorable comparison of the 2013 first quarter operating margin to the 2012 first quarter operating margin. From a revenue standpoint, revenue in the 2013 first quarter was the second highest first quarter revenue in Landstar history. Demand for the Company’s truck services was choppy throughout the 2013 first quarter due in large part to inclement weather. Additionally, the 2013 first quarter had 2 fewer full work days than the 2012 first quarter. In general, Landstar experienced softness throughout the 2013 first quarter in both the number of loads and revenue per load on loads hauled via truck with much of the softness coming from revenue hauled on heavy/specialized platform equipment.”

Key Stats (on next page)…

Revenue decreased 9.16% from $691.63 million in the previous quarter. EPS decreased 21.92% from $0.73 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.81 to a profit $0.79. For the current year, the average estimate has moved down from a profit of $3.03 to a profit of $2.97 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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