Freight broker Landstar System raised its third-quarter earnings guidance Tuesday after the market close.
The Jacksonville, Florida-based company now expects revenue to be in a range of $1.68 billion to $1.72 billion and earnings per share in a range of $2.45 to $2.55, 8% and 11% higher than the midpoints of the prior ranges, respectively.
The current third-quarter consensus EPS estimate for Landstar (NASDAQ: LSTR) is $2.28.
“The improved guidance reflects truckload volume currently trending above the 2021 second quarter in a low single-digit percentage range, and revenue per load on loads hauled via truck trending above the 2021 second quarter in a mid single-digit percentage range,” a filing with the Securities and Exchange Commission read.
Management previously forecasted truck volumes to decline slightly sequentially from the second quarter and truck revenue per load to move slightly higher.
The statement was issued prior to management’s planned appearance at Deutsche Bank’s (NYSE: DB) 2021 Transportation Conference on Wednesday.
On the company’s second-quarter call with analysts, management said revenue per load during June was the highest ever for any June in company history. The June result followed an abnormal surge in yields during May.
The truckload market continues to burst at the seams. Carriers have rejected more than one out of every five loads under contract for more than a year now and the spot market has been unable to fill the void. Sky-high consumer demand, an inability of retailers to rebuild inventory positions and a lack of drivers have been the primary catalysts.
The result has been a precipitous climb in spot volumes and rates, which bodes well for Landstar as it brokers very little freight under contract.