Landstar Reports Revenue Decline for Q1
[Stay on top of transportation news: Get TTNews in your inbox.]
Landstar System Inc. experienced a decline in revenue and earnings during the first quarter of 2024, the company reported April 24.
The Jacksonville, Fla.-based motor carrier posted net income of $47.1 million, or $1.32 a diluted share, for the three months ending March 31. That compared with $78.2 million, $2.17, during the 2023 period. Total revenue decreased 18.4% to $1.17 billion from $1.44 billion.
Landstar ranks No. 6 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 26 on the TT Top 100 list of the largest logistics companies.
“The Landstar team performed admirably in a challenging freight environment as both the number of loads hauled via truck and revenue per load on loads hauled via truck exceeded the high end of the company’s guidance issued in our 2023 fourth-quarter earnings release,” Landstar CEO Frank Lonegro said. “The company is laser-focused on supporting our network of small business owners and executing on our strategic growth initiatives and technology enhancements.”
Landstar noted in the earnings report that the number of loads hauled via truck declined 13%, and truck revenue per load declined 7% year-over-year. But the company also pointed out that each performed slightly better than the high end of its expectations in its previously issued guidance.
“We are excited about the future, the new leadership structure of our sales organization and the strength of our balance sheet,” Lonegro said. “Landstar is well-positioned to capitalize when freight fundamentals improve.”
The results surpassed expectations by Wall Street investment analysts, who had been looking for $1.28 per share and quarterly revenue of $1.12 billion, according to Zacks Consensus Estimate.
Landstar noted in the report that truck transportation revenue hauled by independent business capacity owners and truck brokerage carriers decreased 19.2% to $1.07 billion from $1.32 billion during the same time last year. These operations represent 91% of revenue and include truckload operations such as van equipment as well as unsided/platform equipment. It also includes less-than-truckload and other truck transportation operations.
Revenue Review
- Revenue from truckload transportation via van equipment decreased 16.8% to $628.3 million from $755.1 million during the year-ago period.
- Revenue from truckload transportation via unsided/platform equipment decreased 9.2% to $343 million from $377.6 million.
- Less-than-truckload revenue decreased 18.8% to $25.6 million from $31.6 million.
- Revenue from other truck transportation, which largely is related to power-only services, decreased 54.9% to $72 million from $159.5 million.
- Revenue from rail, air and ocean cargo carriers decreased 11.5% to $76.8 million from $86.8 million. These operations represent 7% of total revenue.
Want more news? Listen to today's daily briefing below or go here for more info:
