NASDAQ$LSTR

Landstar System Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Landstar reported record third quarter revenue and diluted earnings per share.

Landstar System, Inc. reported a 5% increase in revenue to $1.816 billion and a 7% increase in diluted earnings per share to $2.76 in Q3 2022, both establishing new all-time third quarter records. Gross profit was $185.7 million, slightly below the previous year, while variable contribution reached a record $245.7 million.

  • Revenue increased by 5% compared to Q3 2021, reaching $1.816 billion.
  • Diluted earnings per share increased by 7% compared to Q3 2021, reaching $2.76.
  • Truck transportation revenue accounted for 88% of total revenue.
  • Revenue from rail, air, and ocean cargo carriers increased by 49% compared to Q3 2021.

Headline financials

Total Revenue

$1.82B

Previous: $1.73B+4.7%
EPS (adj)

$2.76

Previous: $2.58+7.0%
Trucks provided by BCOs

11.6K

Previous: 11.7K-0.9%
Total loads

649.4K

No prior period
BCO loads

249.4K

No prior period
Capital Expenditures

-$13.6M

Previous: -$9.56M-42.5%
Free Cash Flow

$86.6M

Previous: $89.1M-2.8%
Net Income

$100M

Previous: $98.7M+1.6%
Operating Income

$133M

Previous: $131M+1.6%
Gross Profit

$1.78B

Previous: $1.7B+4.7%
Cash & Equivalents

$178M

Previous: $231M-22.9%
Total Assets

$1.99B

Previous: $1.91B+3.9%
Stock-Based Comp

$3.6M

No prior period

Revenue & EPS history

Landstar · Revenue · Quarterly

$1.82B

Q3 2022+4.7%vs Q3 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Landstar · $1.82B total across 7 segments · Q3 2022

  • Truckload: Van equipment
    $914M-0.4%
  • Truckload: Unsided/platform equipment
    $454M+7.3%
  • Other truck transportation
    $195M-6.5%
  • Ocean and air cargo carriers
    $164M+95.3%
  • Less-than-truckload
    $35.3M+14.7%
  • Rail intermodal
    $27.7M-37.8%
  • Other
    $25.5M+1.9%

Forward guidance

Landstar anticipates Q4 2022 revenue to be in the range of $1.775 billion to $1.825 billion and DEPS to be in the range of $2.60 to $2.70, including insurance and claims expense estimated at 4.5% of BCO revenue.

Tailwinds

  • Landstar's fiscal year 2022 includes an extra week of operations.
  • The company anticipates hauling approximately 30,000 to 40,000 truck loads during the extra week.
  • The company anticipates establishing new all-time fiscal year records in 2022.
  • Annual revenue is expected to be in excess of $7.5 billion.
  • DEPS is expected to be in excess of $11.75.

Headwinds

  • There continues to be a lot of unease regarding U.S. economic conditions as we head into the fourth quarter.
  • High inventory levels being reported by large retailers corresponds with what we anticipate will be decreased seasonal demand for freight services in connection with the 2022 holiday shipping season.
  • Comparisons to the 2021 fourth quarter results will be challenging for Landstar, given the unprecedented strength our business experienced during the 2021 fourth quarter.
  • The number of loads hauled via truck was below the corresponding period of 2021 in a mid-single-digit percentage range through the first several weeks of October.
  • Truck revenue per load is expected to be below the 2021 fourth quarter by 5 to 7 percent.

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 2022

Historical avgQ3 2022

-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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