NASDAQ$LSTR

Landstar System Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Landstar reported strong Q3 2020 results, exceeding expectations due to increased truck load volumes and revenue per load.

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.

Headline financials

Total Revenue

$1.09B

Previous: $1.01B+7.3%
EPS (adj)

$1.61

Previous: $1.35+19.3%
Trucks provided by BCOs

10.6K

Previous: 10.4K+1.2%
Total loads

532.8K

Previous: 517.8K+2.9%
Capital Expenditures

-$7.75M

Previous: -$5.98M-29.7%
Free Cash Flow

$54.1M

Previous: $47.3M+14.5%
Net Income

$61.9M

Previous: $53.3M+16.2%
Operating Income

$82.4M

Previous: $70.6M+16.6%
Gross Profit

$1.06B

Previous: -$18.7M+5781.2%
Cash & Equivalents

$219M

Previous: $284M-23.2%
Total Assets

$1.39B

Previous: $1.39B+0.5%
Stock-Based Comp

$1.49M

Previous: $1.1M+35.2%

Revenue & EPS history

Landstar · Revenue · Quarterly

$1.09B

Q3 2020+7.3%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Landstar · $1.09B total across 6 segments · Q3 2020

  • Truckload: Van equipment
    $667M+15.9%
  • Truckload: Unsided/platform equipment
    $314M-5.2%
  • Ocean and air cargo carriers
    $31.8M+4.6%
  • Rail intermodal
    $30.4M+5.0%
  • Less-than-truckload
    $25.1M-1.0%
  • Other
    $17.2M-14.6%

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.

Tailwinds

  • 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.

Headwinds

  • 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

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 Q3 2020

Historical avgQ3 2020

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro