Landstar System, Inc. (NASDAQ:LSTR) Analysts Are Cutting Their Estimates: Here's What You Need To Know
Landstar System, Inc. (NASDAQ:LSTR) shareholders are probably feeling a little disappointed, since its shares fell 2.7% to US$192 in the week after its latest annual results. Results were roughly in line with estimates, with revenues of US$5.3b and statutory earnings per share of US$7.36. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Landstar System after the latest results.
View our latest analysis for Landstar System
After the latest results, the consensus from Landstar System's 13 analysts is for revenues of US$5.05b in 2024, which would reflect a perceptible 4.9% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to fall 11% to US$6.61 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.47b and earnings per share (EPS) of US$7.76 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.
The analysts made no major changes to their price target of US$176, suggesting the downgrades are not expected to have a long-term impact on Landstar System's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Landstar System, with the most bullish analyst valuing it at US$201 and the most bearish at US$148 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Landstar System's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.9% by the end of 2024. This indicates a significant reduction from annual growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.3% annually for the foreseeable future. It's pretty clear that Landstar System's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Landstar System. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at US$176, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Landstar System going out to 2025, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Landstar System that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
