Landstar System Stock Down After Q1 Forecast Cut, Supply Chain Fraud: Retail’s Bearish

The company cut its first-quarter earnings projections to the range of $0.90 to $0.95 per share from the earlier forecast of $1.05 to $1.25.

Stocktwits Inc

Updated: Apr 4, 2025, 1:01 PM IST

Landstar System (LSTR) stock fell 5.9% in extended trade on Wednesday after the transportation company trimmed its first-quarter earnings forecast and flagged supply chain fraud.

The company cut its first-quarter earnings projections to the range of $0.90 to $0.95 per share from the earlier forecast of $1.05 to $1.25.

“We expect insurance and claims costs to be highly elevated in the 2025 first quarter, primarily due to cargo theft and truck accident claim development,” the company said in a statement.

Landstar also said it discovered a significant supply chain fraud during the final week of the first quarter that remains under investigation. However, it does not involve its core North American truckload services.

Per its preliminary investigations, the fraud may adversely affect Landstar’s first-quarter earnings in the range of $0.35 to $0.50 per share, which is related to an impairment of a trade accounts receivable recorded on the company’s Dec. 28, 2024, balance sheet, before any potential insurance or other recoveries.

The company also said that through the first eight weeks of the first quarter, the number of loads hauled via truck fell about 4% compared to the same period last year.

However, its revenue per load on loads hauled via truck during the first eight weeks of 2025 was about equal compared to a year earlier.

“With respect to fiscal March, our truck volume performance was relatively consistent with normal February to March seasonal patterns while truck revenue per load was below normal February to March seasonal patterns,” said CEO Frank Lonegro.

Retail sentiment on Stocktwits remained in the ‘bearish’ (29/100) territory, while retail chatter remained ‘extremely low.’