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Landstar's (LSTR) Board Appoints Frank Lonegro as New CEO

Landstar System, Inc. LSTR board of directors has chosen Frank A. Lonegro as the new president and chief executive officer (CEO) of the company, effective Feb 2, 2024. Frank A. Lonegro is succeeding James B. Gattoni, who has been serving the company for almost 30 years.

James B. Gattoni will continue with his dual roles through LSTR’s fourth-quarter 2023 earnings conference call, which is scheduled to be released on Feb 1, 2024. Post earnings release, Gattoni will step down to his role of special adviser to the CEO. He is anticipated to retire from the advisory role in July 2024.

Gattoni in LSTR

Gattoni had joined Landstar as corporate controller in 1995. In 2007, he was promoted to the position of chief financial officer (CFO) and then to president in 2014. Later, he got promoted to CEO with the retirement of Henry Gerkens. Under Gattoni’s supervision, Landstar’s revenues have more than doubled to $7.5 billion and its net income has tripled ($431 million in 2022).

David Bannister, Landstar board member and head of the compensation committee, stated, “Landstar has greatly benefited from Jim’s many contributions over an almost 30-year career with the company. His passion for the independent business owners who make up the Landstar network has played an integral part in driving Landstar forward as a technology-driven industry leader. We wish Jim all the best in his retirement.”

New CEO’s Prior Expertise

Mr. Lonegro is currently serving as executive vice president and CFO of Beacon Building Products, a products distribution company serving customers throughout the United States and Canada. Prior to this, Mr. Lonegro worked for almost 20 years at CSX Corporation CSX, a rail transportation company, wherein he worked in multiple important positions such as executive vice president and chief financial officer from 2015 to 2019, key technology and operational roles like president of CSX Technology, vice president of Service Design, and vice president of Mechanical.

Notably, Gattoni stated, “Frank is an experienced, solutions-oriented leader. He understands the fast-paced freight transportation industry, the critical importance of a safety-first culture and our commitment to the long-term success of Landstar agents, BCOs and other third-party capacity providers to continue to drive our growth.”

Zacks Rank and Stocks to Consider

Currently, Landstar carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and SkyWest, Inc. SKYW. Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Wabtec has an expected earnings growth rate of 22.02% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.

The Zacks Consensus Estimate for WAB’s current-year earnings has improved 5.1% over the past 90 days. Shares of WAB have gained 20.4% year to date.

SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 31.5% over the past 90 days. Shares of SKYW have surged 191.9% year to date.

SKYW delivered a trailing four-quarter earnings surprise of 32.57%, on average.

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