NASDAQ$LSTR

Landstar System Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Landstar's Q3 2021 earnings marked record quarterly revenue and diluted earnings per share.

Landstar System reported record quarterly revenue of $1.734 billion, a 60% increase compared to Q3 2020. Net income reached a record $98.7 million, with diluted earnings per share of $2.58. Operating income also hit a record of $131.4 million, up 60% from the previous year.

  • Revenue, operating income, net income, and diluted earnings per share increased significantly compared to Q3 2020.
  • Gross profit reached an all-time quarterly record of $189.2 million.
  • Variable contribution also reached an all-time quarterly record of $242.3 million.
  • The company anticipates establishing new all-time fiscal year records in 2021 with annual revenue expected to be in excess of $6 billion and diluted earnings per share expected to be in excess of $9.55.

Headline financials

Total Revenue

$1.73B

Previous: $1.09B+59.8%
EPS (adj)

$2.58

Previous: $1.61+60.2%
Trucks provided by BCOs

11.7K

Previous: 10.6K+11.1%
Capital Expenditures

-$9.56M

Previous: -$7.75M-23.4%
Free Cash Flow

$89.1M

Previous: $54.1M+64.6%
Net Income

$98.7M

Previous: $61.9M+59.4%
Operating Income

$131M

Previous: $82.4M+59.6%
Gross Profit

$1.7B

Previous: $1.06B+60.3%
Cash & Equivalents

$231M

Previous: $219M+5.5%
Total Assets

$1.91B

Previous: $1.39B+37.5%

Revenue & EPS history

Landstar · Revenue · Quarterly

$1.73B

Q3 2021+59.8%vs Q3 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Landstar · $1.73B total across 7 segments · Q3 2021

  • Truckload: Van equipment
    $918M+37.7%
  • Truckload: Unsided/platform equipment
    $423M+34.5%
  • Other truck transportation
    $209M
  • Ocean and air cargo carriers
    $84.1M+164.9%
  • Rail intermodal
    $44.5M+46.1%
  • Less-than-truckload
    $30.8M+22.7%
  • Other
    $25M+45.4%

Forward guidance

Landstar anticipates continued solid performance in Q4 2021, with revenue expected to be in the range of $1.70 billion to $1.75 billion and diluted earnings per share in the range of $2.55 to $2.65.

Tailwinds

  • Broad-based economic strength will support a strong freight environment.
  • Likely to continue to be in a capacity-constrained environment, which should continue to support elevated truck revenue per load.
  • Revenue per load on loads hauled via truck and the number of loads hauled via truck are trending fairly consistent with historical third to fourth quarter sequential patterns.
  • Expect normal seasonal trends in revenue per load and load volume on loads hauled via truck as we move through the final months of 2021.
  • Both revenue per load and load volume on loads hauled via truck would establish new fourth quarter records in the 2021 fourth quarter.

Headwinds

  • Insurance and claims costs of 4.3 percent of BCO revenue is assumed.
  • Normal seasonal trends in revenue per load and load volume on loads hauled via truck as we move through the final months of 2021.
  • The anticipation depends on broad-based economic strength.
  • The anticipation depends on a capacity-constrained environment.
  • The guidance is based on expectations as to volume and pricing on loads hauled by truck.

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 2021

Historical avgQ3 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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