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Sep 26, 2020
Landstar Q3 2020 Earnings Report
Landstar reported strong Q3 2020 results, exceeding expectations due to increased truck load volumes and revenue per load.
Key Takeaways
Landstar System reported a 7% increase in revenue to $1.086 billion and a 19% increase in diluted earnings per share to $1.61 compared to Q3 2019. The company benefited from sequential increases in truck load volumes and revenue per load, particularly for van equipment.
Revenue increased by 7% year-over-year to $1.086 billion.
Diluted earnings per share increased by 19% year-over-year to $1.61.
Truck load volumes increased by 3% compared to Q3 2019.
Truck revenue per load increased by 5% compared to Q3 2019.
Revenue by Segment
Forward Guidance
Landstar expects truck load volumes in Q4 2020 to be above Q4 2019 in a high single-digit percentage range and truck revenue per load to be higher in a low double-digit percentage range. Revenue is anticipated to be in the range of $1.150 billion to $1.200 billion, and diluted earnings per share are expected to be between $1.32 and $1.42 per share, including a $0.29 per share charge related to agent commission arrangement buyouts. Excluding the one-time cost, diluted earnings per share guidance would be $1.61 to $1.71.
Positive Outlook
- Number of loads hauled via truck expected to be above the corresponding period of 2019 in a high single-digit percentage range.
- Pricing expected to remain strong and relatively stable.
- Truck revenue per load expected to be higher than the 2019 fourth quarter in a low double-digit percentage range.
- Revenue for the 2020 fourth quarter is anticipated to be in a range of $1.150 billion to $1.200 billion.
- New initiative relating to the reorganization of its regional field operations centers throughout the United States in support of its BCO network.
Challenges Ahead
- Company expects to record a liability of approximately $15.0 million in its 2020 fourth quarter relating to anticipated buyouts of certain incentive commission arrangements with several of its independent sales agents
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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