$LSTR

Stifel maintained a Hold rating and $160 price target on TFI International (NYSE:TFII). The firm sees data centers as a multi-year growth opportunity for select transportation companies, estimating $5.3B in freight spending by 2026. Landstar and TFI's Daseke subsidiary are cited as primary beneficiaries. Landstar reported Q2 2026 revenue of $1.43B, beating estimates but missing on EPS.

Heartland Express (HTLD) reported the slowest revenue growth in its sector, with shares down 5.1% to $12.33. RXO (RXO) had the fastest revenue growth (25% YoY) and beat EPS estimates, but its stock fell 7.3% to $19.48. Werner (WERN) missed EPS estimates despite 24% revenue growth, with shares down 2.7% to $37.28. Old Dominion (ODFL) beat revenue and EPS estimates but saw a 20.4% drop to $180.07. Landstar (LSTR) reported 18.1% revenue growth and a 7% beat, with shares down 6.8% to $172.80.

Ground transportation stocks reported strong Q2 earnings, with revenues beating estimates by 1.7%. Saia (SAIA) reported $956.5M revenue, up 17.1% YoY, meeting expectations. RXO (RXO) outperformed with $1.77B revenue, up 25% YoY. Werner (WERN) missed EPS estimates despite 24% revenue growth. ArcBest (ARCB) and Landstar (LSTR) also reported mixed results. Stocks showed varied reactions post-earnings.

Lucky Strike Entertainment reported a 3.5% improvement in same-store sales, driven by retail bowling and food sales growth. California underperformed, leading to restructuring. The company reduced capital expenditure by 19% and issued conservative fiscal 2027 EBITDA guidance of $340M-$360M. Management plans to shed 10 properties and focus on higher-performing markets.

A US Supreme Court ruling in May has exposed freight brokers to lawsuits over carrier accidents, leading to a $604M damage award against CH Robinson Worldwide Inc. and others. Brokers are reducing carrier networks, insurance premiums are rising, and shares of CHRW, LSTR, and RXO have fallen. The ruling may increase freight costs and benefit larger brokers.

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.

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.