- Landstar System (LSTR, Financial) reschedules Q1 2025 earnings release due to supply chain fraud investigation.
- Expected financial impact of fraud up to $15 million, equivalent to $0.43 per share.
- Despite fraud, Q1 revenue reported at $1.153 billion, EPS before fraud impact at $0.95.
Landstar System, Inc. (LSTR) has postponed its first quarter 2025 earnings release and conference call to May 13, 2025, from the initially scheduled April 29 date, as the company addresses an ongoing supply chain fraud investigation. This decision aligns with the filing of a Form 12b-25 for a five-day extension to submit its Form 10-Q to the SEC.
The fraud, identified in the last week of Q1 2025, targets Landstar's international freight forwarding operations via a specific independent commission sales agency, leaving the core North American truckload services unaffected. The financial impact of this fraud could reach up to $15 million in net income, translating to approximately $0.43 per share after taxes, excluding legal costs and potential recoveries.
On a positive note, Landstar's Q1 2025 revenues amounted to $1.153 billion, positioning them in the upper half of the provided guidance range. The earnings per share (EPS) pre-fraud stood at $0.95, also at the higher end of the updated forecast. As of March 29, 2025, the company reported a robust balance sheet with cash and short-term investments totaling approximately $473 million.
Investors are advised to stay vigilant for the upcoming announcements scheduled for May 13, which are expected to provide detailed insights into the nature of the fraud, the extent of control deficiencies, and the company's plans for remediation. Despite the isolated nature of the incident, there are concerns regarding Landstar's oversight and monitoring mechanisms for its international operations.
