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Landstar Gears Up to Report Q3 Earnings: What's in the Cards?

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Landstar System, Inc. (LSTR - Free Report) is scheduled to report third-quarter 2024 results on Oct. 29, after market close.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Landstar has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed once), delivering an average surprise of 1.12%.

Let’s see how things have shaped up for Landstarthis earnings season.

LSTR’s Q3 Expectations

The Zacks Consensus Estimate for Landstar’s third-quarter 2024 revenues is pegged at $1.22 billion, indicating a 5.4% decline year over year. The top line is likely to have been weighed down by weakness across the majority of its segments. The consensus mark lies within the company guidance of $1.175-$1.275 billion.

The Zacks Consensus Estimate for truck transportation segment revenues is pegged at $1.12 billion, indicating a 3.8% decrease from the year-ago reported figure. The Zacks Consensus Estimate for ocean and air-cargo carrier segment revenues is pegged at $58.74 million, indicating a 10.8% decline from the year-ago reported figure.

The Zacks Consensus Estimate for Rail intermodal revenues is pegged at $23.24 million, indicating a 0.8% uptick from the year-ago reported figure.

On the flip side, Landstar is being hurt by reduced demand for freight services and increased truck capacity. Due to the demand weakness, shipment volumes and rates are low. Driver shortage is another concern. Notably, the Zacks Consensus Estimate for LSTR’s third-quarter 2024 earnings has been revised downward by 13.6% in the past 90 days to $1.46 per share. Further, the consensus mark implies a 14.6% decline from the year-ago actuals. The consensus mark of $1.46 lies within the company guidance of $1.35-$1.55.

What Our Model Says for LSTR

Our proven model does not conclusively predict an earnings beat for Landstar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Landstar has an Earnings ESP of -0.19% and a Zacks Rank #4 (Sell).

Landstar System, Inc. Price and EPS Surprise

Landstar System, Inc. Price and EPS Surprise

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

LSTR’s Q2 Highlights

LSTR’s second-quarter earnings per share of $1.48 beat the Zacks Consensus Estimate of $1.46 but decreased 20% year over year. Revenues of $1.225 billion lagged the Zacks Consensus Estimate of $1.255 billion and declined 10.8% year over year.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

C.H. Robinson (CHRW - Free Report) has an Earnings ESP of +5.14% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks.

CHRW is scheduled to report third-quarter 2024 earnings on Oct. 30. Low operating costs are expected to have aided CHRW’s performance in the to-be-reported quarter.

The Zacks Consensus Estimate for third-quarter earnings has been revised 1.9% upward in the past 60 days. CHRW’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average beat being 7.3%.

American Airlines (AAL - Free Report) has an Earnings ESP of +32.87% and a Zacks Rank #2.

AAL is scheduled to report third-quarter 2024 results on Oct. 24, before market open.AAL has an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters (missing the mark once). The average beat is 103.2%.

The Zacks Consensus Estimate for AAL’s third-quarter 2024 earnings has been revised upward in excess of 200% in the past 30 days and is currently pegged at 13 cents per share.


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