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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.
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 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
- Charge is expected to decrease 2020 fourth quarter diluted earnings per share by approximately $0.29.
- Insurance and claims expense at 4.8 percent of BCO revenue.
- Anticipated charge for the expected buyouts of certain agent commission arrangements.
- Assuming the estimated range of revenue for the 2020 fourth quarter described above, the anticipated charge for the expected buyouts of certain agent commission arrangements, and insurance and claims expense at 4.8 percent of BCO revenue, representing average insurance and claims costs as a percentage of BCO revenue over the past five years
Revenue & Expenses
Visualization of income flow from segment revenue to net income