What's in the Cards for Landstar (LSTR) in Q2 Earnings?
Landstar System, Inc. (LSTR) is scheduled to report second-quarter 2023 results on Jul 26, after market close.
Let’s see how things have shaped up for Landstar this earnings season.
Q2 Expectations
The Zacks Consensus Estimate for Landstar’s second-quarter 2023 revenues is pegged at $1.35 billion, indicating a 31.5% decline year over year. The top line is likely to have been weighed down due to soft freight demand. As a result, LSTR’s management lowered the guidance for second-quarter 2023 revenues and earnings per share (EPS) owing to continued weakness in freight demand.
LSTR expects revenues to be between $1.325 billion and $1.375 billion (earlier view: $1.40 billion and $1.45 billion). EPS is now anticipated in the range of $1.75-$1.85 (prior view: $1.9-$2).
Moreover, driver shortage continues to be a major challenge facing the trucking industry. As old drivers retire, trucking companies find it difficult to hire drivers since the job does not appeal to the younger generation. Further, escalating operating expenses, led by high fuel costs, are likely to have dented the prospects of the truck transport providers.
Notably, the Zacks Consensus Estimate for LSTR’s second-quarter 2023 EPS has been revised downward by 15.9% in the past 90 days to 61 cents.
What Our Model Says
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 0.00% and a Zacks Rank #3.
Highlights of Q1
Landstar’s first-quarter 2023 earnings of $2.17 per share beat the Zacks Consensus Estimate of $2.07 but fell 35% year over year. Revenues of $1,435.7 million beat the Zacks Consensus Estimate of $1,411.2 million but declined 27.2% 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 their second-quarter 2023 earnings:
Copa Holdings, S.A. (CPA) has an Earnings ESP of +0.82% and a Zacks Rank #2. CPA will release results on Aug 9. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of more than 100% for second-quarter 2023. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised upward by 94% in the past 90 days.
Alaska Air (ALK) has an Earnings ESP of +0.72% and a Zacks Rank #3. ALK will release results on Jul 25.
Alaska Air has an expected earnings growth rate of 21% for second-quarter 2023.
The Zacks Consensus Estimate for ALK’s second-quarter 2023 earnings has been revised upward by 36.1% in the past 90 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
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Landstar System, Inc. (LSTR) : Free Stock Analysis Report
