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Jun 26, 2021
Landstar Q2 2021 Earnings Report
Landstar achieved record quarterly results, with revenue reaching $1.571 billion and diluted earnings per share at $2.40.
Key Takeaways
Landstar System, Inc. reported all-time quarterly record net income of $92.3 million, or $2.40 per diluted share, in the second quarter of 2021, on record quarterly revenue of $1.571 billion. Gross profit also reached an all-time quarterly record of $220.8 million.
Second quarter revenue, gross profit, net income and diluted earnings per share each set all-time quarterly records.
Operating margin was 55.4 percent, also an all-time quarterly record.
Truckload volume in the second quarter exceeded the first quarter by over 12 percent.
Revenue from truck loads hauled via van equipment exceeded the 2020 second quarter by 101 percent.
Landstar
Landstar
Landstar Revenue by Segment
Revenue by Segment
Van equipment Revenue
CapyFin.comUnsided/platform equip. Revenue
CapyFin.comLess-than-truckload Revenue
CapyFin.comOther truck transport Revenue
CapyFin.comRail intermodal Revenue
CapyFin.comOcean & air cargo Revenue
CapyFin.com Forward Guidance
Landstar anticipates revenue for the 2021 third quarter to be in a range of $1.55 billion to $1.60 billion and diluted earnings per share to be in a range of $2.20 to $2.30.
Positive Outlook
- Broad-based economic strength will support a strong freight environment for the near future.
- Likely continue to be in a capacity-constrained environment.
- Expectation that capacity-constrained environment should continue to support elevated revenue per truck load in the third quarter.
- Revenue per load on loads hauled via truck in the third quarter to be slightly higher than the second quarter.
- Number of loads hauled via truck in the third quarter to be slightly below the second quarter.
Challenges Ahead
- Comparisons to prior year should begin to normalize as the adverse impact of the COVID-19 pandemic on the Company’s financial results significantly receded during the 2020 third quarter.
- Year-over-year comparisons will be more challenging.
- Insurance and claims costs of 4.6 percent of BCO revenue.
- Potential reversion of claim costs to be more in line with historical trends over a longer period of time.
- Increased premiums relating to auto liability coverage that we are paying to third party insurance companies and increased severity we have already experienced during the first several weeks of July as compared to the 2021 first half, mostly due to a small number of specific incidents.