Boston, MA 04/28/2014 (wallstreetpr) – Landstar System, Inc. (NASDAQ:LSTR), a provider of transportation and supply chain services, announced record Q1.14 earnings and issued optimistic guidance for the current quarter. However, one analyst believes that the guidance issued by the company does not bring out a very accurate picture.
The company, following record Q1, expects revenue to come between $750 and $800 million. That should lead to earnings per share of between $0.73 and $0.78. However, according to Robert Salmon, an analyst with Deutsche Bank, the performance guidance issued by Landstar looks conservative. In other words, the analyst believes the company can comfortably beat the results as its fundamentals are quite strong.
Deutsche Bank upgraded their rating on the stock of Landstar System, Inc. (NASDAQ:LSTR) after the company issued strong Q1 results. The firm, therefore, considers the stock a “buy.” It previously rated the stock a “hold.”
Well-positioned
Analysts and insiders agree that Landstar System, Inc. (NASDAQ:LSTR) is well-positioned to experience growth into the future. The increase in load volumes and the high prices per load mean that the company has all the ingredients needed for growth.
1Q2014 reporting
Landstar System, Inc. (NASDAQ:LSTR) reported net income of $27.6 million or $0.61 per share diluted. That was better than net income of $26.8 million or $0.55 per share in the corresponding quarter a year ago. Revenue in the latest quarter was up 10 percent to $688 million.
According to CEO Henry Gerkens, the company enjoys a perfect business environment that is supporting growth in revenue and earnings. The good news is that the favorable business environment is expected to continue into the future.
Besides the favorable external business environment, Landstar System, Inc. (NASDAQ:LSTR) also hailed its sound management and the ability to curb expenses. As such, the company expects to continue reporting earnings improvement and save adequate money that can be distributed to shareholders. Therefore, the company is keen on maximizing shareholder value as the business environment remains perfect.
