By Katherine Hamilton
Landstar System has identified significant supply-chain fraud which could affect outlook.
The freight company said Wednesday it believes the fraud may cut first-quarter earnings per share by 35 cents to 50 cents due to an impairment of trade accounts receivable recorded on its December balance sheet.
It now anticipates first-quarter earnings per share to be 90 cents to 95 cents. Landstar had previously guided for earnings per share of $1.05 to $1.25. Analysts polled by FactSet are forecasting $1.12 a share.
Landstar said it is investigating the fraud, which does not involve its core North American truckload services.
The company said it expects insurance and claims costs to be elevated in the first quarter due to cargo theft and truck accident claim development.
The company plans to release its first-quarter results on April 29.
Shares fell 6.2% to $142.50 after the market closed Wednesday.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
April 02, 2025 17:59 ET (21:59 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.