NASDAQ$LSTR

Landstar System Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Landstar's revenue decreased due to soft demand and readily available truck capacity, while diluted earnings per share were impacted by higher insurance and claims costs.

Landstar System reported a decrease in revenue and diluted earnings per share for Q4 2019 compared to Q4 2018. Revenue was $994.9 million, and diluted earnings per share was $1.27. The shortfall in diluted earnings per share was attributed to higher than anticipated insurance and claims costs.

  • Q4 2019 revenue was $994.9 million, at the midpoint of the company's guidance.
  • Diluted earnings per share for Q4 2019 was $1.27, below the low end of the company's guidance due to higher insurance and claims costs.
  • Truck transportation revenue hauled by BCOs and truck brokerage carriers was $911.8 million, representing 92% of total revenue.
  • The macroeconomic environment with soft demand and readily available truck capacity impacted truck rates and volumes.

Headline financials

Total Revenue

$995M

Previous: $1.18B-15.8%
EPS (adj)

$1.27

Previous: $1.68-24.4%
Trucks provided by BCOs

10.2K

Previous: 10.6K-3.4%
Capital Expenditures

$4.22M

Previous: $2.42M+74.1%
Free Cash Flow

$42.9M

Previous: $91.3M-53.0%
Net Income

$50M

Previous: $68.3M-26.7%
Operating Income

$66.5M

Previous: $86.1M-22.7%
Gross Profit

$137M

Previous: $158M-13.1%
Cash & Equivalents

$320M

Previous: $200M+60.0%
Total Assets

$1.43B

Previous: $1.38B+3.4%
Stock-Based Comp

-$234K

Previous: $5.25M-104.5%

Revenue & EPS history

Landstar · Revenue · Quarterly

$995M

Q4 2019-15.8%vs Q4 2018
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Landstar · $995M total across 6 segments · Q4 2019

  • Truckload: Van equipment
    $572M-18.9%
  • Truckload: Unsided/platform equipment
    $315M-9.1%
  • Ocean and air cargo carriers
    $32.2M-37.9%
  • Rail intermodal
    $30.8M-6.7%
  • Less-than-truckload
    $24.8M-4.7%
  • Other
    $20.1M+1.0%

Forward guidance

Landstar anticipates revenue for the 2020 first quarter to be in a range of $915 million to $965 million. Excluding the cost of the ultimate resolution of the recent tragic accident, diluted earnings per share is anticipated to be in a range of $1.10 to $1.20.

Headwinds

  • Macroeconomic environment characterized by soft demand.
  • Weakness in the U.S. manufacturing sector.
  • Readily available truck capacity.
  • The number of loads hauled via truck in the first few weeks of 2020 was below the corresponding period of the prior year in a mid-single digit percentage range.
  • Revenue per load on loads hauled via truck in the first few weeks of January was below the same period of the prior year in a mid-single digit percentage range.

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 Q4 2019

Historical avgQ4 2019

-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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