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Sep 24, 2022
Landstar Q3 2022 Earnings Report
Landstar reported record third quarter revenue and diluted earnings per share.
Key Takeaways
Landstar System, Inc. reported a 5% increase in revenue to $1.816 billion and a 7% increase in diluted earnings per share to $2.76 in Q3 2022, both establishing new all-time third quarter records. Gross profit was $185.7 million, slightly below the previous year, while variable contribution reached a record $245.7 million.
Revenue increased by 5% compared to Q3 2021, reaching $1.816 billion.
Diluted earnings per share increased by 7% compared to Q3 2021, reaching $2.76.
Truck transportation revenue accounted for 88% of total revenue.
Revenue from rail, air, and ocean cargo carriers increased by 49% compared to Q3 2021.
Revenue by Segment
Forward Guidance
Landstar anticipates Q4 2022 revenue to be in the range of $1.775 billion to $1.825 billion and DEPS to be in the range of $2.60 to $2.70, including insurance and claims expense estimated at 4.5% of BCO revenue.
Positive Outlook
- Landstar's fiscal year 2022 includes an extra week of operations.
- The company anticipates hauling approximately 30,000 to 40,000 truck loads during the extra week.
- The company anticipates establishing new all-time fiscal year records in 2022.
- Annual revenue is expected to be in excess of $7.5 billion.
- DEPS is expected to be in excess of $11.75.
Challenges Ahead
- There continues to be a lot of unease regarding U.S. economic conditions as we head into the fourth quarter.
- High inventory levels being reported by large retailers corresponds with what we anticipate will be decreased seasonal demand for freight services in connection with the 2022 holiday shipping season.
- Comparisons to the 2021 fourth quarter results will be challenging for Landstar, given the unprecedented strength our business experienced during the 2021 fourth quarter.
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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