Landstar falls 17.8% after third-quarter results weigh on profit metrics

What happened

Landstar fell 17.8% on October 28, 2026, because its third-quarter results missed expectations and highlighted higher insurance and claims costs (LSTR). The stock opened 15.2% below the previous close and settled at a closing price of $138.80 as the market absorbed the earnings shortfall. The company released quarterly results in the session, so the report was the direct cause of the move.

How big was the move

The decline was far larger than normal for the stock: it was 6.0 times a typical daily move. Trading volume was 4.2 times its 20-day average, signalling heavier-than-normal selling pressure. Over the last five sessions the stock fell 19.0%. By contrast the S&P 500 over five sessions fell 0.2%, and the Industrials sector median on the day rose 0.2%, leaving the stock 18.0 percentage points worse than the sector median on the day. Market value stood at $5.63 billion.

The technical picture

Technically, Landstar was under pressure across short, medium and long horizons. The stock sat 17.3% below its 20-day moving average, 19.2% below its 50-day moving average and 21.5% below its 200-day moving average. The 50-day average was below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) was 22, below 30, a level often called oversold. The share price was 39.2% below the 52-week high, had fallen 17.6% over one month and fell 18.0% over three months, though it rose 7.1% over one year. Volatility was 47% annualized over 60 days, higher than 96% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 26, 2026, Landstar reported revenue of $5.29 billion, which grew 10.4% from a year earlier, and diluted earnings per share of $4.72, which rose 20.4% from a year earlier. Gross margin narrowed to 12.7% from 17.9% a year earlier, while operating margin was 3.9%, roughly in line with 3.8% a year earlier. The company held net cash of $145.9 million and return on invested capital was 11.7%. Share count over one year decreased by 2.1%.

On valuation, the stock traded at 29.4 times trailing earnings and 23.4 times expected earnings. Its price to trailing earnings is higher than 67% of its own readings over the past five years; the five-year median is 27.7 times earnings. PromtFinance scores showed Quality at 77 (Positive) and Stability at 78 (Positive), while Momentum was 34 (Weak) and Revisions 8 (Very weak). Those scores point to solid fundamentals but weakening momentum and analyst sentiment.

Earnings and analyst expectations

Landstar reported last quarterly results on October 27, 2026, with earnings per share of $1.42 against $1.67 expected, 15.0% below estimates. The company has recorded zero consecutive quarters beating estimates and the average surprise over the last four reports is 13.7% below estimates. Typical two-day reaction after recent reports was that the stock fell 0.7%.

Coverage of the quarter noted mixed messages. Company disclosures showed the quarter included higher insurance and claims costs that weighed on operating results. Some external coverage cited EPS figures up to $1.89 while the company released $1.42. That divergence appeared to leave investor expectations elevated heading into the report and contributed to the pronounced sell-off after the release.

Analyst coverage showed a consensus rating of Hold and a consensus price target of $200.40, which is 44.4% above the closing price. Of the 33 analysts with a rating, 12% rate the stock Buy or Strong Buy. The gap between the consensus target and the market price underscores that while many analysts see longer-term upside, near-term profit metrics and rising costs have weakened investor sentiment.

What to watch

• January 27, 2027: next scheduled earnings report date
• Last report on October 27, 2026: earnings per share of $1.42 against $1.67 expected, 15.0% below estimates
• Trading volume on October 28, 2026: 4.2 times its 20-day average
• Price to trailing earnings: 29.4 times trailing earnings
• Distance from the 52-week high: 39.2% below the 52-week high