Landstar Stock Gains From Multiple Tailwinds: Hold Stock Now
Zacks Investment Research | Jan 01, 2019 08:53PM ET
Despite high operating expenses, Landstar System (NASDAQ:LSTR) is a stock that investors must retain in their portfolios owing to the below-mentioned tailwinds.
The company has performed impressively in the first nine months of the year owing to an upbeat freight scenario, thereby causing a rise in the demand for its services. Revenues in the first nine months of 2018 increased 32% year over year, owing to an increase in the number of loads hauled and a substantial rise in revenues per load across all modes.
With buoyant freight scenario still in place, we expect the company to perform well in the final quarter of 2018 as well. For the fourth quarter, revenues are estimated in the range of $1.180-$1.230 billion, reflecting an increase of 12-17% from the comparable period of 2017. Further, earnings per share are projected between $1.56 and $1.62 in the final quarter of 2018 compared with $1.54 reported in fourth-quarter 2017. Notably, the company has an encouraging earnings history, having surpassed the Zacks Consensus Estimate in three of the last four quarters, with average of 1.8%.
Landstar System, Inc. Price and Consensus
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