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Sep 30, 2023

Landstar Q3 2023 Earnings Report

Landstar's Q3 2023 performance was impacted by soft freight market fundamentals, resulting in a decrease in revenue and earnings per share compared to the record Q3 2022.

Key Takeaways

Landstar System reported a decrease in revenue to $1.289 billion and earnings per share to $1.71 for Q3 2023, compared to $1.816 billion in revenue and $2.76 EPS in Q3 2022. The results reflect a challenging freight market with lackluster demand and a loose truck capacity market.

Q3 2023 EPS was $1.71, down from $2.76 in Q3 2022.

Q3 2023 revenue was $1.289 billion, compared to $1.816 billion in Q3 2022.

Truck transportation revenue accounted for 91% of the total revenue.

Cash and short-term investments were approximately $497 million as of September 30, 2023.

Total Revenue
$1.29B
Previous year: $1.82B
-29.0%
EPS
$1.71
Previous year: $2.76
-38.0%
Truck Brokerage Carriers
51.72K
Previous year: 71.21K
-27.4%
BCO Trucks
10.25K
Previous year: 11.64K
-11.9%
Gross Profit
$128M
Previous year: $186M
-31.0%
Cash and Equivalents
$440M
Previous year: $178M
+147.3%
Free Cash Flow
$109M
Previous year: $213M
-48.7%
Total Assets
$1.85B
Previous year: $1.99B
-6.8%

Landstar

Landstar

Landstar Revenue by Segment

Forward Guidance

Landstar anticipates Q4 2023 revenue to be in the range of $1.225 billion to $1.275 billion and EPS to be in the range of $1.60 to $1.70.

Positive Outlook

  • Revenue per load on loads hauled via truck expected to be 6% to 8% below Q4 2022.
  • Strong balance sheet with approximately $497 million in cash and short term investments as of September 30, 2023.

Challenges Ahead

  • Number of loads hauled via truck expected to be 20% to 22% below Q4 2022.
  • Expectation of a muted peak season.
  • The 2023 fourth quarter will include 13 weeks of operations while the 2022 fourth quarter included 14 weeks.

Revenue & Expenses

Visualization of income flow from segment revenue to net income