NASDAQ$LSTR

Landstar System Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Landstar achieved record quarterly results, with revenue reaching $1.571 billion and diluted earnings per share at $2.40.

Landstar System, Inc. reported all-time quarterly record net income of $92.3 million, or $2.40 per diluted share, in the second quarter of 2021, on record quarterly revenue of $1.571 billion. Gross profit also reached an all-time quarterly record of $220.8 million.

  • Second quarter revenue, gross profit, net income and diluted earnings per share each set all-time quarterly records.
  • Operating margin was 55.4 percent, also an all-time quarterly record.
  • Truckload volume in the second quarter exceeded the first quarter by over 12 percent.
  • Revenue from truck loads hauled via van equipment exceeded the 2020 second quarter by 101 percent.

Headline financials

Total Revenue

$1.57B

Previous: $824M+90.7%
EPS (adj)

$2.40

Previous: $0.68+252.9%
Trucks provided by BCOs

11.6K

Previous: 10.3K+12.2%
Total loads

628.3K

Previous: 452.8K+38.8%
Capital Expenditures

-$4.92M

Previous: -$11.9M+58.5%
Free Cash Flow

$87.4M

Previous: $12.4M+605.9%
Net Income

$92.3M

Previous: $24.3M+280.5%
Operating Income

$122M

Previous: $32.2M+279.9%
Gross Profit

$1.55B

Previous: $804M+92.4%
Cash & Equivalents

$186M

Previous: $245M-24.1%
Total Assets

$1.7B

Previous: $1.27B+33.9%

Revenue & EPS history

Landstar · Revenue · Quarterly

$1.57B

Q2 2021+90.7%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Landstar · $1.57B total across 6 segments · Q2 2021

  • Truckload: Van equipment
    $971M+101.0%
  • Truckload: Unsided/platform equipment
    $444M+79.6%
  • Ocean and air cargo carriers
    $60.2M+96.5%
  • Rail intermodal
    $44.4M+91.3%
  • Less-than-truckload
    $29.1M+26.8%
  • Other
    $21.9M+34.3%

Forward guidance

Landstar anticipates revenue for the 2021 third quarter to be in a range of $1.55 billion to $1.60 billion and diluted earnings per share to be in a range of $2.20 to $2.30.

Tailwinds

  • Broad-based economic strength will support a strong freight environment for the near future.
  • Likely continue to be in a capacity-constrained environment.
  • Expectation that capacity-constrained environment should continue to support elevated revenue per truck load in the third quarter.
  • Revenue per load on loads hauled via truck in the third quarter to be slightly higher than the second quarter.
  • Number of loads hauled via truck in the third quarter to be slightly below the second quarter.

Headwinds

  • Comparisons to prior year should begin to normalize as the adverse impact of the COVID-19 pandemic on the Company’s financial results significantly receded during the 2020 third quarter.
  • Year-over-year comparisons will be more challenging.
  • Insurance and claims costs of 4.6 percent of BCO revenue.
  • Potential reversion of claim costs to be more in line with historical trends over a longer period of time.
  • Increased premiums relating to auto liability coverage that we are paying to third party insurance companies and increased severity we have already experienced during the first several weeks of July as compared to the 2021 first half, mostly due to a small number of specific incidents.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.5%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+1.3%

Avg return

30 days after

43%

29 / 68 earnings

Positive

+6.3%

Q3 2016

Best reaction

-8.8%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%+0.8%+12.9%
Q4 2025-2.3%-3.4%-2.5%
Q3 2025-3.7%-2.8%+1.1%
Q1 2025-2.5%+0.9%-2.4%
Q4 2024-3.5%-5.9%-8.2%
Q3 2024-2.5%-2.4%+2.6%
Q2 2024-0.5%-3.4%-5.5%
Q1 2024+3.1%+3.0%+4.6%
Q4 2023-2.0%-1.2%-4.2%
Q3 2023-2.3%-1.6%+4.8%
Q2 2023-1.6%+0.3%-7.9%
Q1 2023-1.4%+0.8%-0.6%
Q4 2022+6.2%+5.9%+5.5%
Q3 2022-1.0%+0.3%+11.5%
Q2 2022-0.8%-3.7%+1.6%
Q1 2022+4.8%+5.9%-1.5%
Q4 2021-7.1%-1.7%-3.3%
Q3 2021+3.0%+4.8%+3.5%
Q2 2021-3.1%-0.4%+2.3%
Q1 2021-3.4%-3.2%-4.4%
Q4 2020-5.0%-6.1%+6.9%
Q3 2020+2.4%+2.5%+1.2%
Q2 2020+0.1%+0.6%+9.0%
Q1 2020+3.7%+10.1%+14.8%
Q4 2019+0.4%-1.0%-9.9%
Q3 2019-0.6%+2.0%-3.9%
Q2 2019+0.8%+1.0%-5.2%
Q1 2019+2.5%-2.3%-7.9%
Q4 2018-1.6%+1.3%+5.9%
Q3 2018-1.5%-1.7%+3.0%
Q2 2018+1.6%+2.0%+8.3%
Q1 2018-5.0%-3.8%+7.0%
Q4 2017+4.0%-1.5%-0.9%
Q3 2017+0.2%-1.3%-1.7%
Q2 2017-8.8%-7.0%-6.4%
Q1 2017+0.1%-1.3%-3.8%
Q4 2016-1.0%-0.3%+3.1%
Q3 2016+6.3%+8.8%+23.7%
Q2 2016-1.6%-0.3%-1.9%
Q1 2016-0.6%
Q4 2015+0.3%
Q3 2015-4.1%
Q2 2015+1.9%
Q1 2015-1.2%
Q4 2014-0.7%
Q3 2014-0.1%
Q2 2014+5.2%
Q1 2014+3.2%
Q4 2013+2.0%
Q3 2013-6.9%
Q2 2013+2.9%
Q1 2013-1.7%
Q4 2012-2.7%
Q3 2012+1.6%
Q2 2012+4.1%
Q1 2012-5.6%
Q4 2011+0.3%
Q3 2011-2.4%
Q2 2011-2.8%
Q1 2010-1.4%
Q1 2011-1.4%
Q4 2008-1.1%
Q4 2010-1.1%
Q3 2010+0.3%
Q3 2009+0.3%
Q2 2010+1.2%
Q2 2009+1.2%
Q4 2009+1.2%

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