Landstar System Cuts Q1 EPS Forecast Amid Fraud Investigation

Landstar System Inc. is facing a significant supply chain fraud investigation that has led to a sharp cut in its first-quarter 2025 earnings guidance. The company has revised its earnings per share (EPS) forecast down to 90-95 cents from an earlier estimate of 1.05-1.25 dollars, with analysts previously expecting 1.11 dollars per share. The fraud is expected to impair trade accounts receivable by 35-50 cents per share, translating to a financial impact of approximately 12.5 to 17.9 million dollars. Additionally, Landstar anticipates elevated insurance and claims costs related to cargo theft and truck accidents will further pressure its finances. Following this news, Landstar's stock dropped by about 6.2% in after-hours trading. The company plans to provide more details when it releases its first-quarter results on April 29.