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Landstar drives up Q3 net income, revenues

The Jacksonville, Fla.-based asset-light provider of integrated transportation management solutions recorded earnings per share (EPS) of $1.01 for the quarter, surpassing the street consensus estimate and Q3 2016’s EPS of $0.86 per share.

   Landstar System, Inc. posted a net income of $42.4 million on revenues of $943.4 million for the third quarter of 2017, up 16.9 percent and 19.7 percent year-over-year, respectively, according to the company’s most recent financial statements.
   Earnings per share (EPS) of $1.01 for the quarter surpassed the street consensus estimate of $0.97, per share, investment bank Stifel said. Landstar recorded EPS of $0.86 for last year’s third quarter.
   Landstar’s board of directors declared a quarterly dividend of $0.10 per share payable on Dec. 8, 2017 to stockholders of record as of the close of business on Nov. 14, 2017.
   During this year’s third quarter, Landstar announced the opening of Landstar Metro in Mexico City.
   “Landstar Metro is a full-service transportation logistics provider with access to truckload, less-than-truckload and expedited third-party capacity, with the benefits of Landstar’s North American freight transportation network and management services,” Landstar President and CEO Jim Gattoni said. “The new operation provides freight and logistics services within the country of Mexico and longer term, is expected to benefit Landstar’s U.S. / Mexico cross-border services at 11 border-crossing points.”
   Landstar Metro’s impact to Q3 EPS was inconsequential.
   Looking ahead, Gattoni said he expects Landstar’s fourth quarter EPS to range between $0.98 and $1.03, and fourth quarter revenues to range between $975 million and $1.025 billion.
   In regards to the fast approaching ELD mandate that is scheduled to kick into gear on Dec. 18, Landstar Vice President of Safety & Compliance Mike Cobb told American Shipper at the end of Sept. that the company is in support of the mandate.
   Landstar, whose drivers are all owner operators, started implementing ELDs back in 2012 and all of its owner operators will be 100 percent complaint by Dec. 4, he said.
   As with many companies, Cobb said the mandate could lead to some tightening of capacity at first.

The FREIGHTWAVES TOP 500 For-Hire Carriers list includes Landstar System (No. 6).