Landstar System shares ease as results disappoint

Shares of Landstar System LSTR.O are down 2.2% at $140.62 in afternoon trading Tues after the transportation services co earlier in the day reported weaker-than-expected earnings

LSTR also bucking broader trend in the mkt Tues, with the Nasdaq .IXIC last up about 1.9%

A Morningstar analyst wrote in a note that "excluding an unusual fraud matter, profitability missed" its forecast but that he expects net operating margin "to quickly normalize upward during the next freight up cycle, as has occurred historically"

Still, he wrote, "we anticipate a tariff-induced economic slowdown, and we are tempering our near-term revenue and margin assumptions" and "lowering our DCF-derived fair value estimate to $147, from $165 on wide-moat Landstar."

Analyst recommendations on LSTR include 15 "hold" ratings and one "sell" rating

The median PT on the stock is $147.00

Including session move, LSTR down about 17% YTD vs a roughly 1% decline in the Nasdaq .IXIC in that period