- Landstar System has discovered a significant supply chain fraud that is still under investigation.
- The fraud is primarily linked to an impairment of trade accounts receivable recorded on December 28, 2024.
- This development has led the company to cut its expected earnings per share (EPS) guidance for the first quarter.
- The revised EPS guidance is now projected to be between 90 cents to 95 cents, down from the previously anticipated $1.05 to $1.25.
- The fraud could further negatively impact the first-quarter EPS by $0.35 to $0.50.
- Importantly, the fraud does not involve the company’s core North American truckload services.
- The company expects its revenue to hit at or near the mid-point of the previously provided guidance.
- Analysts are currently issuing 0 buy ratings, 16 hold ratings, and 1 sell rating for Landstar shares.
Landstar System on Smartkarma
Landstar System has been subject to extensive analyst coverage on Smartkarma, with research reports from Baptista Research shedding light on the company’s performance and strategies. In a report titled “Landstar System: What Its Hybrid Model Means for the Future of Logistics!”, Baptista Research highlighted Landstar System‘s resilience in concluding fiscal year 2024 amidst challenging market conditions. Despite soft freight demand and increased costs impacting earnings per share slightly below guidance, Landstar System achieved noteworthy milestones, including a significant record in the heavy haul division.
Furthermore, in another report by Baptista Research titled “Landstar System Inc.: This Is How They Are Dealing With Challenges of Maintaining Competitive Technology Advancements! – Major Drivers”, the focus was on Landstar System‘s response to challenges in maintaining competitive technology advancements. As a key player in the transportation and logistics sector, Landstar System‘s unique model leveraging independent agents and owner-operator truck drivers has been scrutinized. Baptista Research delves into factors influencing the company’s stock price and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology.
A look at Landstar System Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Landstar System, Inc., a North American truckload carrier, is positioned with a mixed outlook for its long-term performance based on Smartkarma Smart Scores. While the company’s Value and Dividend scores are moderate at 2, indicating room for improvement in these areas, Landstar System shows promise with a Growth score of 3. With a Resilience score of 4, the company demonstrates strength in navigating challenges, and its Momentum score of 3 suggests a steady pace in the market.
The Smartkarma Smart Scores reveal a nuanced perspective on Landstar System‘s overall outlook. As a key player in transporting a wide range of freight across North America, including iron, steel, automotive products, and more, Landstar System offers truckload carrier, intermodal transportation, and expedited air and truck services to shippers in the US, Canada, and Mexico. The company’s strategic position and diverse service offerings may influence its long-term trajectory in the industry.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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