LSTR’s EPS Growth Will Continue To Accelerate Into 2H10
Analysts at Piper Jaffray reiterate their "overweight" rating on Landstar System (NASDAQ: LSTR), while revising their estimates for the company. The target price for LSTR is set to $52.
According to Piper Jaffray, “Yesterday after the market close LSTR reported 2Q10 EPS of $0.49 (31% y-o-y growth), which compared to Consensus of $0.48 and in line with our $0.49 estimate. Upside was driven by stronger yields (price), offset to some degree by (1) Brokerage mix and to a lesser extent gross yield compression and (2) slightly higher costs (volatile insurance and claims expense).”
“Mgmt introduced 3Q10 EPS guidance in line with Consensus – our sense is guidance is conservative and EPS growth will continue to accelerate into 2H10 now being driven on strengthening price / yield improvement,” the analysts add.
Piper Jaffray has raised its EPS estimates for FY10 from $1.84 to $1.85, but it has lowered its EPS estimate for FY11 from $2.47 to $2.40.
