$LSTR

Landstar System said on its July 28 Q2 earnings call that it cut its approved motor carrier pool by about 35% over four years, from over 100,000 in Q2 2022 to just over 64,000 by end of Q2. The company attributed the reduction to tighter safety, security, and service vetting and said it has no plans to ease scrutiny.

A roundup of Tuesday Wall Street analyst actions included Deutsche Bank upgrading Palantir to Buy and keeping a $200 target, and Wells Fargo initiating APi Group at Overweight with a $53 target. Other calls covered CoreWeave, Micron, Walmart, Nike, Apple, and SK Hynix, with multiple price targets and rating changes ahead of earnings for some names.

Landstar (LSTR) reported Q2 revenue of $1.43B, up 18.1% year over year and above estimates, but adjusted EPS of $1.44 missed expectations. Management cited stronger heavy haul and van demand and improved net BCO truck count, while noting about $10.5M in unfavorable insurance claim adjustments. Analysts questioned insurance risk, demand sustainability, and agent/carrier vetting.

Trucking and logistics stocks are set for their worst month in over a year as legal risk rises after a Dallas County jury preliminary verdict against CH Robinson Worldwide, tied to a May Supreme Court ruling that may enable lawsuits against brokers for injuries from motor carriers. CH Robinson shares are down 21% this month; RXO and Landstar also fell amid weak earnings and outlooks.

Strategic Performance Drivers and Market Dynamics Management attributed the 18% year-over-year revenue growth to a rapid shift in market conditions favoring transportation providers, marking the first time since 2021 that Q2 volumes outpaced pre-pandemic seasonality. The heavy haul service offering emerged as a primary growth engine, with revenue increasing 18% driven by robust demand in data center infrastructure, aerospace, and energy sectors.

Landstar System CEO Frank Lonegro reported a jump in freight brokers interested in joining the carrier’s network of independent agents in the aftermath of the Montgomery v. Caribe Transport II ruling. The Supreme Court ruled in the case that freight brokers can be sued under state law for negligently hiring unsafe trucking companies. The decision unwound what had been a presumed protection in many states by shifting some responsibility to brokers.

Landstar (LSTR) said freight demand has stayed strong, with management expecting further revenue growth as truck capacity tightens and pricing improves. It warned that a post-Montgomery legal environment could raise insurance claim costs and scrutiny. The company is expanding agents and its BCO fleet. Landstar shares trade at $178.46.

UBS raised its price target on Landstar System to $195 from $185 and kept a Neutral rating, according to the report. Landstar System shares were around $179.48 at 10:48am EDT, down 3.15% on the day, with a 1st Jan change of -13.64% and a 5-day change of +26.24%.

Analyst estimates for Landstar System, Inc. show its average 12-month price target lowered to $197.36 from $199.14. The range is $145 to $240, implying about 6% upside versus the Jul. 28 close. The consensus rating remains “Hold” with 3 Buys, 13 Holds, and 4 Sells, according to FactSet.

Landstar System held its Q2 2026 earnings call. Management said it renewed its insurance coverage for 12 months and believes it is adequately protected after the Montgomery nuclear verdict. It reported a net increase of 68 trucks in Q2, a 10th straight quarter of turnover improvement, and July truck revenue per load about 26% above July 2025. The company discussed AI and technology investments and selective M&A.