Landstar System, Inc. (NASDAQ:LSTR) Increases Dividend to $0.44 Per Share

Key Points

• Landstar increased its quarterly dividend 10% to $0.44 per share from $0.40. The dividend is payable September 9 to shareholders of record on August 18, with a roughly 1.0% annualized yield and a payout ratio indicating continued coverage.
• Second-quarter revenue rose 18.2% year over year to $1.432 billion, exceeding analyst expectations, while EPS increased to $1.44 from $1.20 a year earlier. However, EPS missed one broader consensus estimate of $1.49 by $0.05.
• Landstar shares opened at $179.12, near their 200-day moving average of $177.83 but below the 50-day average of $208.49. The stock trades at a relatively high P/E ratio of 49.95, leaving limited room for earnings disappointments.

Landstar System, Inc. (NASDAQ:LSTR - Get Free Report) announced a quarterly dividend on Tuesday, July 28th. Investors of record on Tuesday, August 18th will be paid a dividend of 0.44 per share by the transportation company on Wednesday, September 9th. This represents a c) dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Tuesday, August 18th. This is a 10.0% increase from Landstar System's previous quarterly dividend of $0.40.

Landstar System has raised its dividend by an average of 0.0%annually over the last three years and has increased its dividend annually for the last 10 consecutive years. Landstar System has a payout ratio of 25.2% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Landstar System to earn $7.28 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 22.0%.

Landstar System Price Performance

LSTR opened at $179.12 on Wednesday. The business has a fifty day moving average of $208.49 and a 200 day moving average of $177.83. The stock has a market cap of $6.08 billion, a P/E ratio of 49.95 and a beta of 0.89. The company has a quick ratio of 1.88, a current ratio of 1.88 and a debt-to-equity ratio of 0.05. Landstar System has a 52-week low of $119.32 and a 52-week high of $228.46.

Landstar System (NASDAQ:LSTR - Get Free Report) last released its earnings results on Tuesday, July 28th. The transportation company reported $1.44 earnings per share for the quarter, missing analysts' consensus estimates of $1.49 by ($0.05). Landstar System had a return on equity of 19.49% and a net margin of 2.62%.The business had revenue of $1.43 billion during the quarter, compared to analysts' expectations of $1.34 billion. During the same quarter in the previous year, the business earned $1.20 EPS. The business's revenue for the quarter was up 18.2% on a year-over-year basis. As a group, sell-side analysts anticipate that Landstar System will post 5.73 EPS for the current year.

Landstar System News Roundup

Here are the key news stories impacting Landstar System this week:

• Positive Sentiment: Landstar reported second-quarter revenue of $1.432 billion, up 18.2% year over year and above the $1.34 billion analyst estimate. EPS increased to $1.44 from $1.20 a year earlier. Landstar System Reports Second Quarter Revenue and Earnings
• Positive Sentiment: The company increased its quarterly dividend by 10% to $0.44 per share from $0.40. The new payment is scheduled for September 9 for shareholders of record on August 18, supporting the shareholder-return story. Landstar System Posts Strong Q2 Results and Raises Dividend
• Neutral Sentiment: Reported EPS of $1.44 exceeded the Zacks consensus estimate of $1.42, but other published analyst consensus data placed expectations at $1.49. This discrepancy makes the earnings reaction more mixed. Landstar System Beats Q2 Earnings and Revenue Estimates
• Negative Sentiment: The $1.44 EPS result missed the broader consensus estimate of $1.49 by $0.05, which may be weighing on the shares even though revenue surpassed expectations. Landstar also trades at a forward-looking valuation that leaves limited room for earnings disappointment. Landstar System Second Quarter Earnings Report

Landstar System Company Profile

Landstar System, Inc provides integrated transportation management solutions through a network of independent agents and third-party capacity providers. The company specializes in truckload brokerage, intermodal, air and ocean freight, expedited and heavy-haul services, along with value-added offerings such as cargo insurance, customs brokerage and supply chain management. Landstar's proprietary technology platform enables real-time load matching, shipment tracking and data analytics to optimize fleet utilization and improve customer service.

Founded in 1968 and headquartered in Jacksonville, Florida, Landstar pioneered an asset-light brokerage model that has evolved into a global logistics operation.

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