Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Freight delivery company Landstar (NASDAQ:LSTR) reported Q2 CY2025 results exceeding the market’s revenue expectations, but sales fell by 1.1% year on year to $1.22 billion. Its non-GAAP profit of $1.20 per share was 2.4% above analysts’ consensus estimates.
Let’s dig into the relative performance of Landstar (NASDAQ:LSTR) and its peers as we unravel the now-completed Q2 ground transportation earnings season.
When Wall Street turns bearish on a stock, it’s worth paying attention.
These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
Shares of freight delivery company Landstar (NASDAQ:LSTR)
fell 3.3% in the morning session after the company reported second-quarter financial results that revealed a significant drop in year-over-year profitability, leading to several analyst price target cuts.
Freight delivery company Landstar (NASDAQ:LSTR) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 1.4% year on year to $1.21 billion. Its GAAP profit of $1.20 per share was 1.8% above analysts’ consensus estimates.
A cash-heavy balance sheet is often a sign of strength, but not always.
Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.
Freight delivery company Landstar (NASDAQ:LSTR) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 1.6% year on year to $1.16 billion. Its non-GAAP profit of $0.95 per share was in line with analysts’ consensus estimates.
Wall Street’s bearish price targets for the stocks in this article signal serious concerns.
Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how ground transportation stocks fared in Q1, starting with Landstar (NASDAQ:LSTR).
Freight delivery company Landstar (NASDAQ:LSTR) beat Wall Street’s revenue expectations in Q1 CY2025, but sales fell by 1.9% year on year to $1.15 billion. Its GAAP profit of $0.85 per share was 5.7% below analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after the major indices popped (Nasdaq +3.4%, S&P 500 +2.5%) in response to the positive outcome of U.S.-China trade negotiations, as both sides agreed to pause some tariffs for 90 days, signaling a potential turning point in ongoing tensions. This rollback cuts U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. imports to 10%, giving companies breathing room to reset inventories and supply chains.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
