The 10-second takeaway
For the quarter ended March 31 (Q1), Landstar System missed slightly on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins grew, net margins grew.
Landstar System logged revenue of $649.0 million. The 14 analysts polled by S&P Capital IQ expected to see revenue of $660.7 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $572.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.57. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.55 per share. GAAP EPS of $0.57 for Q1 were 33% higher than the prior-year quarter's $0.43 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.3%, 40 basis points worse than the prior-year quarter. Operating margin was 6.6%, 60 basis points better than the prior-year quarter. Net margin was 4.1%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $758.2 million. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $2.96 billion. The average EPS estimate is $2.78.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 186 members out of 200 rating the stock outperform, and 14 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Landstar System a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Landstar System is outperform, with an average price target of $57.54.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.