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Landstar (LSTR) Q4 Earnings & Revenues Beat, Surge Y/Y

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Landstar System’s (LSTR - Free Report) fourth-quarter 2020 earnings (excluding 31 cents from non-recurring items) of $2.01 per share surpassed the Zacks Consensus estimate of $1.75. The bottom line also surged 58.3% year over year on higher revenues.

Revenues of $1,296.4 million massively outperformed the Zacks Consensus Estimate of $1,189.6 million and also jumped 30.3% year over year. The top line benefited from strong performances of the truck transportation, rail intermodal, and ocean and air cargo carriers segments.

Detailed Statistics

Gross profit (revenues excluding the cost of purchased transportation and commissions to agents) came in at $182.4 million in the reported quarter, up 23% year over year.

Further, operating income soared 26.9% from the prior-year quarter’s figure to $84.41 million. Total costs and expenses (on a reported basis) increased 30.4% to $1.21 billion.

Total revenues in the truck transportation segment — contributing 92.7% to the top line — amounted to $1.20 billion, up 31.8% from the year-ago quarter’s figure. Within the truck transportation segment, truckload transportation revenues hauled via van equipment rose 43.6% to $821 million. Additionally, truckload transportation revenues hauled via unsided/platform equipment climbed 12.3% to $354.1 million.

Less-than-truckload revenues increased 6.9% to $26.56 million. Overall fourth-quarter truck transportation revenue per load rose 16.9% year over year.

Rail intermodal revenues of $32.57 million increased 5.9% from the figure recorded in fourth-quarter 2019. Moreover, revenues in the ocean and air cargo carriers segment augmented 34% year over year to $43.18 million. Other revenues, however, declined 5.8% to $18.92 million.

Landstar System, Inc. Price, Consensus and EPS Surprise

Landstar System, Inc. Price, Consensus and EPS Surprise

Landstar System, Inc. price-consensus-eps-surprise-chart | Landstar System, Inc. Quote

Liquidity

At the end of the fourth quarter, Landstar, carrying a Zacks Rank #3 (Hold), had cash and cash equivalents of $249.35 million compared with $319.51 million recorded at the end of 2019. Additionally, long-term debt (excluding current maturities) totaled $65.36 million at the end of the fourth quarter, compared with $70.21 million at the end of 2019. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dividend

Landstar’s board declared a quarterly cash dividend of 21 cents per share, payable to shareholders on Mar 12, 2021, of record as of Feb 15, 2021.

Q1 Outlook

Anticipating favorable market conditions, such as strong consumer demand and tight truck capacity, to continue, Landstar expects revenues as well as earnings per share to increase from the year-ago levels. The company estimates revenues to be $1.10 billion-$1.15 billion in the current quarter. The Zacks Consensus Estimate for the same stands at $1.05 billion.

Further, Landstar predicts the number of loads hauled via truck to increase in high-single-digit percentage range from the year-ago number. Meanwhile, revenue per load on loads hauled via truck is expected to rise in mid-teen percentage range from the first quarter of 2020.

The company forecasts earnings per share in the band of $1.55-$1.65 for the first quarter. The Zacks Consensus Estimate for the same is pegged at $1.42.

Sectorial Snapshot

Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Transportation sector.

United Airlines (UAL - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding 6 cents from non-recurring items) of $7 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $6.56. Meanwhile, operating revenues of $3,412 million lagged the Zacks Consensus Estimate of $3,420.4 million.

J.B. Hunt Transport Services (JBHT - Free Report) , carrying a Zacks Rank #3, reported earnings of $1.44 per share, beating the Zacks Consensus Estimate of $1.27. Total operating revenues of $2,737.7 million also surpassed the Zacks Consensus Estimate of $2,514.3 million.

Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. Total revenues of $3,973 million topped the Zacks Consensus Estimate of $3,754.5 million.

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