Landstar has record third quarter, expects record breaking year (Courtesy of the Jacksonville Business Journal) — Landstar System Inc. set a record third quarter in revenue and diluted earnings per share, teeing up a record-setting year for the company, although it warned of softness in the fourth quarter.
The Jacksonville-based Fortune 500 transportation company reported $1.8 billion in revenue for the third quarter, a 5% jump from the $1.73 billion it posted in the 2021 third quarter. The company saw a 7% increase in diluted earnings per share compared to the same quarter last year, which came in at $2.76 compared to $2.58 in 2021.
According to Gattoni, revenue per truckload in the 2022 third quarter was essentially equal to that of the 2021 third quarter, while the overall number of loads hauled by trucks in the quarter increased by 1%.
The fourth quarter might not be as strong, with the company saying the number of truckloads hauled is expected to drop by 2% to 4%.
“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,” CEO Jim Gattoni said in a statement. “Additionally, comparisons to the 2021 fourth quarter results will be challenging for Landstar, given the unprecedented strength our business experienced during the 2021 fourth quarter.”
For the fourth quarter — which includes an extra week compared to last year — the company anticipates revenue of $1.775 billion to $1.825 billion, leading to earnings per share between $2.60 and $2.70. That would be below the $1.85 billion in revenue and $2.99 earnings per share posted in the 2021 fourth quarter.
For the year, Landstar anticipates $7.5 billion and $11.75 earnings per share — each well above Landstar’s existing record performance, Gattoni said.