By William Trent, CFA of Stock Market Beat
Small Cap Watch List and Mid Cap Watch List member Landstar System (LSTR) Says 5-Cent, 1Q Charge Possible: Financial News – Yahoo! Finance:
Landstar System Inc.’s chief executive said Monday the transportation logistics provider could book a charge for a fatal crash last month involving one of its owner-operators.In a Webcast updating the company’s mid-quarter performance, CEO Henry H. Gerkens estimated Phoenix-based Landstar’s charge in the first quarter from the event could amount to $5 million, or 5 cents per share, which is equal to what the company self-insures for such incidents.
Other than the accident, the first quarter is progressing as expected, which was for $0.37-$0.43 in EPS. Landstar makes serious efforts to maintain a strong safety record, but despite the best intentions accidents will happen. The company had a similar incident three years ago, and to its credit encouraged analysts and investors to treat it as a normal (if not frequently recurring) operating expense. Back then the charge caused investors to sell the shares. This time, it appears they have learned from that mistake, as the company remains one of the best transportation provider investments.
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