Landstar slides after Q1 EPS guidance cut, flags supply-chain fraud probe

Landstar System's LSTR.O shares down 5.5% to $143.62 early Thurs after freight firm cut current qtr earnings guidance and said it identified a significant supply-chain fraud

LSTR shares hit lowest since Nov 2022 amid broader market selloff after President Trump's latest tariffs salvo .N

Jacksonville, Florida-based co in SEC filing late Weds lowered Q1 EPS forecast to $0.90-$0.95 from $1.05-$1.25. Analysts expected $1.11, per LSEG

Co said the supply chain fraud does not involve its North American truckload services, adding that while investigation is preliminary, it believes the fraud may reduce Q1 EPS by $0.35- $0.50 due to impairment of a trade accounts receivable recorded on its Dec balance sheet, per the filing

It expects insurance and claims costs to be elevated in the qtr due to cargo theft and truck accident claim development

Truck revenue per load was below normal Feb to Mar seasonal patterns, while truck volume was in line with seasonality trends, co said

Brokerages reduce PTs after the news: JP Morgan to $147 from $177, Truist to $150 from $160, TD Cowen to $145 from $161

JPM, which rates LSTR 'neutral', said it is not sure if any peers will be similarly affected, but added it remains clear accident claims and cargo theft are still a major industry issue

With move on Thurs, LSTR shares down ~15% YTD vs ~11% decline in the Dow Jones Transportation Avg .DJT