Landstar System (LSTR) Plunges 13.41% in Four Days Amid Downgrades, Earnings Concerns

Landstar System (LSTR) shares fell 2.16% today, marking the fourth consecutive day of decline, with a total drop of 13.41% over the past four days. The stock price hit its lowest level since December 2020, with an intraday decline of 3.31%.

Analysts have recently downgraded their price targets for Landstar System, which has contributed to the decline in investor sentiment. Susquehanna reduced their target from $130.00 to $120.00, while JPMorgan Chase & Co. lowered theirs from $177.00 to $147.00. These adjustments reflect concerns about the company's near-term prospects.

Landstar System's recent earnings reports have also played a significant role in the stock's performance. The company has seen an average decline of 25.6% following its latest earnings results, indicating that market reactions to its financial performance have been negative. This trend suggests that investors are closely monitoring the company's earnings and are reacting negatively to any perceived underperformance.

In addition to earnings concerns, Landstar System has faced challenges related to its Q1 2025 forecast and supply chain issues. The company cut its Q1 forecast and reported supply chain fraud issues, which likely affected investor confidence and contributed to the stock's decline. These issues highlight the operational challenges that Landstar System is currently facing and may continue to impact its stock price in the near term.

Over the past five years, Landstar System’s stock has delivered a Total Shareholder Return (TSR) of 47%, largely driven by dividend payments. However, the company's earnings per share (EPS) have declined by 0.6% annually, which may be a concern for some investors. Despite revenue growth, the decline in EPS suggests that the company is facing challenges in translating its top-line growth into bottom-line results. This trend may continue to weigh on the stock price as investors seek more consistent earnings growth.