Landstar System (NASDAQ:LSTR) announces its next round of earnings this Wednesday, July 21. Here is Benzinga’s everything-that-matters guide for this Wednesday’s Q2 earnings announcement.
Net Income, Earnings, And Earnings Per Share
Earnings and especially earnings per share (EPS) are useful measures of a company’s profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Analysts predict Landstar System will report earnings of $2.31 per share on revenue of $1.47 billion. Landstar System EPS in the same period a year ago totaled $0.68. Revenue was $823.51 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the “consensus estimates.” A company posting earnings or revenue above or below the consensus estimate is known as an “earnings surprise” and may move the stock by a considerable margin.
If the company were to match the consensus estimate when it reports Wednesday, earnings would be up 239.71%. Sales would be up 78.5% on a year-over-year basis. Here is how the company’s reported EPS has compared to analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 1.63 | 1.72 | 1.37 | 0.70 |
| EPS Actual | 2.01 | 2.01 | 1.61 | 0.68 |
| Revenue Estimate | 1.15 B | 1.19 B | 1.02 B | 775.35 M |
| Revenue Actual | 1.29 B | 1.30 B | 1.09 B | 823.51 M |
Stock Performance
Shares of Landstar System were trading at $151.87 as of July 19. Over the last 52-week period, shares are up 26.94%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Landstar System is scheduled to hold the call at 08:00:00 ET and can be accessed here.
