Benchmark Reiterates Hold Rating on Landstar System (LSTR)

Benchmark analyst Christopher Kuhn reiterated a Hold rating on Landstar System (NASDAQ: LSTR).

He said, "After the close, LSTR reported 4Q 2024 EPS of $1.31, in-line with our estimate (FactSet $1.34) and within the $1.25-$1.45 guidance range. Revenue of $1.209B (+.4% y-o-y) was close to our expectations but the variable contribution margin of 13.8% was below our 14% estimate offset by slightly lower op expenses. LSTR’s BCO count continues to decline and operating income as a percent of net revenue is back down to ’09/’10 levels. Given high TL capacity and soft demand, load growth of -3.4% was at the lower end of the -4% to +1% guidance range but revenue per truckload was 3.1% above the prior year quarter which was within the upper half of the guidance range of 0% to +4%. On a sequential basis, truck revenue per load increased 1% in the fourth quarter versus the third quarter which is in line with pre-pandemic normal seasonality. The company’s 1Q 2025 revenue and EPS guidance are once again below our and FactSet estimates although truck volumes and revenue per load are in-line with normal seasonality. We are Hold rated as we believe LSTR’s valuation, which is at the high end of its long-term ranges, adequately accounts for the high quality of the business and strong balance sheet in a still muted freight demand environment that still has too much capacity."

For an analyst ratings summary and ratings history on Landstar System click here. For more ratings news on Landstar System click here.

Shares of Landstar System closed at $172.92 yesterday.

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