Landstar (LSTR) Q2 Earnings & Revenues Surpass Estimates
Landstar System, Inc. (LSTR) reported solid second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate.
Quarterly earnings per share (EPS) of $1.85 beat the Zacks Consensus Estimate of $1.80 but fell 39.3% year over year. Revenues of $1,373.9 million beat the Zacks Consensus Estimate of $1,338.7 million but declined 30.4% year over year.
Landstar System, Inc. Price, Consensus and EPS Surprise
Landstar System, Inc. price-consensus-eps-surprise-chart | Landstar System, Inc. Quote
Operating income fell 41.5% from the prior-year quarter’s figure to $87.95 million. Total costs and expenses (on a reported basis) decreased 29.4% to $1,288.39million.
Total revenues in the truck transportation segment, contributing to 90.8% of the top line, amounted to $1.25 billion, down 28.6% from the year-ago quarter’s figure. Rail intermodal revenues of $25.23 million decreased 41.9% from the figure recorded in second-quarter 2022.
Revenues in the ocean and air-cargo carrier segments declined 52.5% year over year to $75.44 million. Other revenues increased 2.5% to $26.24 million.
Liquidity, Dividends & Buyback
At the end of second-quarter 2023, Landstar had cash and cash equivalents of $360.52 million compared with $340.98 million recorded at the prior-quarter end. Additionally, long-term debt (excluding current maturities) totaled $53.14 million at the end of the second quarter compared with $60.19 million at the first-quarter end.
LSTR is currently authorized to purchase up to 2,910,339 shares under its previously announced share purchase programs. LSTR’s board of directors has announced a quarterly dividend of 33 cents per share, indicating a hike of 10% from its previous dividend payout of 30 cents. The raised dividend will be paid on Aug 25, 2023, to stockholders of record as of the close of business on Aug 10.
Q3 Outlook
Landstar anticipates third-quarter 2023 revenues in the range of $1.275 billion-$1.325 billion. EPS for the third quarter is estimated to be in the band of $1.65-$1.75.
Currently, Landstar carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s JBHT second-quarter 2023 EPS of $1.81 missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
JBHT’s total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload and a 4% decline in productivity in Dedicated Capacity Solutions on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Delta Air Lines DAL reported better-than-expected revenues and EPS, driven by strong air-travel demand. DAL’s second-quarter 2023 EPS (excluding 16 cents from non-recurring items) of $2.68 comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported EPS of $1.44 a year ago, dull compared to the current scenario, as air-travel demand was not so buoyant then.
DAL’s total revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis, driven by higher air-travel demand.
United Airlines Holdings, Inc. (UAL) reported second-quarter 2023 EPS of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
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