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Jul 01, 2023

Landstar Q2 2023 Earnings Report

Landstar's revenue and diluted earnings per share decreased compared to Q2 2022, reflecting a challenging freight environment and tough year-over-year comparisons.

Key Takeaways

Landstar System reported a decrease in revenue to $1.374 billion and diluted earnings per share (DEPS) of $1.85 for the second quarter of 2023, compared to $1.975 billion in revenue and $3.05 DEPS in the same quarter of the previous year. The results reflect a softened domestic freight environment and difficult year-over-year comparisons following a record-setting 2022.

Revenue for Q2 2023 was $1.374 billion, a decrease from $1.975 billion in Q2 2022.

Diluted earnings per share (DEPS) for Q2 2023 were $1.85, down from $3.05 in Q2 2022.

The number of loads hauled via truck decreased by 16% compared to Q2 2022.

Revenue per load on loads hauled via truck decreased by 15% compared to Q2 2022.

Total Revenue
$1.37B
Previous year: $1.98B
-30.4%
EPS
$1.85
Previous year: $3.05
-39.3%
BCO Contractors
9.75K
Previous year: 11.02K
-11.6%
Truck Brokerage Carriers
58.3K
Previous year: 70.65K
-17.5%
BCO Trucks
10.55K
Previous year: 11.89K
-11.3%
Gross Profit
$140M
Previous year: $208M
-32.9%
Cash and Equivalents
$361M
Free Cash Flow
$46.3M
Total Assets
$1.84B

Landstar

Landstar

Landstar Revenue by Segment

Forward Guidance

Landstar anticipates revenue for the third quarter of 2023 to be in the range of $1.275 billion to $1.325 billion, with DEPS expected to be in the range of $1.65 to $1.75. This includes estimated insurance and claims costs of approximately 5.4% of BCO revenue and an effective income tax rate of 24.5%.

Challenges Ahead

  • Revenue per load on loads hauled via truck is expected to be 10% to 12% below Q3 2022.
  • The number of loads hauled via truck is expected to be 16% to 18% below Q3 2022.
  • Insurance and claims costs are estimated to be 5.4% of BCO revenue for Q3 2023.
  • The anticipated range of DEPS for the 2023 third quarter also reflects an estimated effective income tax rate of 24.5%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income