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Dec 30, 2023
Landstar Q4 2023 Earnings Report
Landstar's Q4 2023 earnings decreased compared to Q4 2022, influenced by a soft macro-freight environment and an extra operating week in the previous year. Revenue and EPS were both lower, but the company maintains a strong balance sheet and is positioned to capitalize on future market improvements.
Key Takeaways
Landstar System reported Q4 2023 revenue of $1.204 billion and EPS of $1.62, compared to revenue of $1.675 billion and EPS of $2.60 in Q4 2022. The results reflect a challenging freight environment and an additional operating week in the prior year.
Q4 2023 revenue was $1.204 billion, a decrease from $1.675 billion in Q4 2022.
EPS for Q4 2023 was $1.62, down from $2.60 in Q4 2022.
The number of loads hauled via truck declined by 22% compared to Q4 2022.
Cash and short-term investments totaled approximately $541 million as of December 30, 2023.
Landstar
Landstar
Landstar Revenue by Segment
Revenue by Segment
Van equipment Revenue
CapyFin.comUnsided/platform equip. Revenue
CapyFin.comLess-than-truckload Revenue
CapyFin.comRail intermodal Revenue
CapyFin.comOcean & air cargo Revenue
CapyFin.com Forward Guidance
Landstar anticipates Q1 2024 revenue to be in the range of $1.10 billion to $1.15 billion and EPS to be in the range of $1.25 to $1.35.
Positive Outlook
- The number of loads hauled via truck and truck revenue per load have each trended reasonably in-line with historical, pre-pandemic end of fourth quarter to the beginning of first quarter sequential patterns.
- Company is well positioned to capitalize when freight market fundamentals improve.
- The Company’s balance sheet continues to be very strong, with cash and short term investments of approximately $541 million as of December 30, 2023.
- It is currently the intention of the Board to pay dividends on a quarterly basis going forward.
- Landstar's financial performance in 2023 was admirable, considering the very difficult freight transportation backdrop.
Challenges Ahead
- Revenue per load on loads hauled via truck to be in a range of 8% to 10% below the 2023 first quarter.
- The number of loads hauled via truck to be in a range of 14% to 16% below the 2023 first quarter.
- Typically, revenue in the first quarter is expected to be lower than the revenue of the immediately preceding fourth quarter.
- Soft macro-freight environment experienced throughout 2023 continued through the 2023 fourth quarter.
- The soft macro-freight environment, along with the additional operating week in the 2022 fourth quarter, made for challenging 2023 fourth quarter to 2022 fourth quarter comparisons
Revenue & Expenses
Visualization of income flow from segment revenue to net income