NASDAQ$LSTR

Landstar System Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Landstar's Q4 2022 performance was impacted by a weaker than typical peak season amid a challenging macroeconomic environment, resulting in decreased revenue and diluted earnings per share compared to the record Q4 2021.

Landstar System reported a decrease in revenue to $1.675 billion and diluted earnings per share (DEPS) of $2.60 for Q4 2022, compared to $1.945 billion in revenue and $2.99 DEPS in Q4 2021. The results reflect softer demand and readily available truck capacity, leading to lower truck rates and volumes. However, the company's fiscal year financial performance in 2022 was the best in its history.

  • Q4 2022 revenue was $1.675 billion, with diluted earnings per share of $2.60.
  • The number of loads hauled via truck decreased by 5.5% compared to Q4 2021.
  • Revenue per load on loads hauled via truck decreased by 7% compared to Q4 2021.
  • Fiscal year 2022 revenue reached a record of approximately $7.4 billion, with diluted earnings per share of $11.76.

Headline financials

Total Revenue

$1.68B

Previous: $1.95B-13.9%
EPS (adj)

$2.60

Previous: $2.99-13.0%
Trucks provided by BCOs

11.3K

No prior period
Total loads

646.2K

Previous: 690.5K-6.4%
Capital Expenditures

$4.91M

Previous: $4.7M+4.4%
Free Cash Flow

$181M

Previous: $55.1M+229.5%
Net Income

$93.3M

Previous: $113M-17.7%
Operating Income

$124M

Previous: $149M-16.4%
Gross Profit

$180M

Previous: $210M-14.2%
Cash & Equivalents

$340M

Previous: $216M+57.6%
Total Assets

$1.93B

Previous: $2.05B-5.6%
Stock-Based Comp

$2.99M

Previous: $8.82M-66.1%

Revenue & EPS history

Landstar · Revenue · Quarterly

$1.68B

Q4 2022-13.9%vs Q4 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Landstar · $1.67B total across 7 segments · Q4 2022

  • Truckload: Van equipment
    $870M-15.0%
  • Truckload: Unsided/platform equipment
    $423M-3.0%
  • Other truck transportation
    $204M-19.2%
  • Ocean and air cargo carriers
    $83.8M-38.0%
  • Less-than-truckload
    $36.4M+14.1%
  • Rail intermodal
    $31.3M-20.7%
  • Other
    $26.1M+2.1%

Forward guidance

Landstar anticipates revenue for the 2023 first quarter to be in a range of $1.40 billion to $1.45 billion and DEPS to be in a range of $2.05 to $2.15.

Tailwinds

  • Truck revenue per load has trended reasonably in-line with pre-pandemic historical fourth quarter to first quarter sequential patterns.
  • Landstar's financial performance in 2022 was the best in the Company’s history.
  • Landstar's achievements speak to the strength and resiliency of the Landstar network.
  • Landstar has the power of our unique agent and capacity network to execute.
  • Landstar has continuing ability to attract productive agents and capacity to the network.

Headwinds

  • We begin the year with a much softer freight environment as compared to the beginning of 2022.
  • We enter 2023 with very difficult quarter over prior year quarter comparisons.
  • Lower truck revenue per load will certainly carry forward into the 2023 first quarter.
  • We expect that revenue hauled via these non-trucking modes in the 2023 first quarter to be $100 million to $120 million below the 2022 first quarter.
  • The number of loads hauled via truck has been 10 to 12 percent below the corresponding period of 2022 and overall truck revenue per load has been 15 to 17 percent below the corresponding period of 2022.

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 2022

Historical avgQ4 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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