LSTR’s EPS Growth Will Continue To Accelerate Into 2H10

Analysts at Piper Jaffray reiterate their "overweight" rating on Landstar System LSTR, while revising their estimates for the company. The target price for LSTR is set to $52. According to Piper Jaffray, “Yesterday after the market close LSTR reported 2Q10 EPS of $0.49 (31% y-o-y growth), which compared to Consensus of $0.48 and in line with our $0.49 estimate. Upside was driven by stronger yields (price), offset to some degree by (1) Brokerage mix and to a lesser extent gross yield compression and (2) slightly higher costs (volatile insurance and claims expense).” “Mgmt introduced 3Q10 EPS guidance in line with Consensus – our sense is guidance is conservative and EPS growth will continue to accelerate into 2H10 now being driven on strengthening price / yield improvement,” the analysts add. Piper Jaffray has raised its EPS estimates for FY10 from $1.84 to $1.85, but it has lowered its EPS estimate for FY11 from $2.47 to $2.40. More Analyst Ratings here