Overview

• Freight transportation firm's Q4 revenue missed analyst expectations

• Q4 EPS declined yr/yr due to elevated insurance and claims costs

• Company repurchased 286,695 shares for $37 mln in Q4

Outlook

• Company did not provide specific future guidance in press release

Result Drivers

• OCEAN REVENUE DECLINE - Decrease in total revenue was primarily due to decreased ocean revenue, while truck transportation revenue remained stable

• INSURANCE COSTS - Elevated insurance and claims costs significantly impacted Q4 earnings, with costs rising due to three vehicular accidents and increased claim reserves

• TRUCK REVENUE PER LOAD - Sequential improvement in truck revenue per load exceeded pre-pandemic normal seasonality, with December truck revenue per load 6% above October's

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy."

• Wall Street's median 12-month price target for Landstar System Inc is $145.76, about 3.9% below its January 27 closing price of $151.68

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nGNX6xR7w9

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)