Landstar Q2 revenue beats estimates as freight transportation market "rapidly" improves

Overview

• U.S. freight logistics firm's Q2 revenue rose 18% yr/yr, beating analyst expectations

• Q2 EPS rose 20% yr/yr to $1.44

• Company raised quarterly dividend by 10%

Outlook

• Landstar says freight transportation market conditions are rapidly improving

• Company says insurance claims environment remains challenging for freight transportation providers

• Landstar intends to continue paying quarterly dividends following a 10% increase

Result Drivers

• FREIGHT MARKET IMPROVEMENT - Co said results benefited from a rapidly improving freight transportation environment, with truck volumes and truck revenue per load outpacing normal seasonal patterns

• HIGHER REVENUE PER LOAD - Truck revenue per load increased about 17% yr/yr, with number of loads hauled via truck up about 2%

• INSURANCE AND CLAIMS COSTS - Increased insurance and claims expense, mainly from unfavorable development of prior years’ claims, negatively impacted Q2 results

Company press release: ID:nGNX61wb9T

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 13 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the ground freight logistics peer group is "buy."

• Wall Street's median 12-month price target for Landstar System Inc is $190.00, about 0.9% below its July 27 closing price of $191.63

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 28 three months ago

Reuters Recommended Reads

• July 27 - Canada's TFI International Q2 adjusted profit beats estimates on growth in all businesses

• July 28 - UPS hikes full-year forecasts after Amazon delivery reductions, shares drop on investor skepticism

• July 28 - PACCAR beats quarterly estimates on strong truck orders

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)