LSTR: Landstar Earnings Meet My Approval
Posted on Friday, April 18th, 2008 | In Stocks to WatchLandstar System, Inc. (LSTR – Annual Report) reported revenue in the 2008 first quarter increased approximately 6 percent to $609 million compared to $577 million for the 2007 first quarter. Net income for the thirteen-week period ended March 29, 2008 was $23.7 million, or $0.45 per diluted share, compared to net income of $21.6 million, or $0.38 per diluted share, for the thirteen-week period ended March 31, 2007.
The midpoint of the $0.51 to $0.57 guidance range for the second quarter was ahead of the $0.53 consensus.
I have said before that I would be willing to own Landstar up to a parity yield with Treasuries, because I think the growth alone is sufficient premium for the risk. Based on the 2007 cash flows and the current yield on 5-year Treasuries, that implies a potential price of $84 – so its safe to say I don’t expect to sell any time soon.
Disclosure: At time of publication, William Trent owns shares of Landstar
Last 5 posts by William Trent
- Capacity Utilization - August 16th, 2009
- Corporate Profits - July 12th, 2009
- Capacity Utilization - April 18th, 2009
- Another Record: Capacity Utilization - April 2nd, 2009
- Record Territory - March 27th, 2009
 About William A. Trent (http://stockmarketbeat.com)
Stock Market Beat editor William A. Trent, CFA, has been an equity analyst since 1996 and is co-author of Understanding and Evaluating Prospectuses, Offering Documents, and Proxy Statements. His experience includes stints with institutional investors responsible for more than $70 billion in assets and covers all market-cap sizes. Sector concentrations have been within the TMT (Telecom, Media and Technology) and Transportation sectors. He is also the senior editor of Financial Education. He is available for freelance writing and consulting projects and can be contacted here. |
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