Truck dealer Landstar System Inc. (NASDAQ: LSTR) reported file earnings per share for the fourth quarter of 2020 at $1.70. The end result included a one-time value of $15.5 million, or 31 cents, to purchase out the legacy compensation plans of unbiased gross sales brokers.
Excluding the cost, the quarter got here in effectively forward of the $1.73 consensus estimate and administration’s raised outlook forward of an look at an investor convention in November, which recommended outcomes could be “barely above” the prior vary of $1.61 to $1.71.
“Landstar’s 2020 fourth-quarter efficiency was excellent. Income, gross revenue and diluted earnings per share had been every all-time quarterly data,” mentioned President and CEO Jim Gattoni.
The Jacksonville, Florida-based firm reported income of $1.3 billion within the quarter, 30% increased year-over-year. Dry van masses elevated 16% year-over-year and income per load elevated 24%. “Shopper demand for durables, constructing merchandise and e-commerce drove file van quarterly income,” mentioned Gattoni.
The year-over-year comparisons for every month of the quarter continued to enhance, “with distinctive energy in substitute line haul providers offered in help of e-commerce associated demand through the vacation peak season,” Gattoni acknowledged.
Flatbed income turned optimistic on a year-over-year comparability for the primary time in 2020 through the fourth quarter as masses elevated 7% and income per load grew 5%.
Whole truck masses had been up 13% year-over-year with truck income per load up 17%.
Capability continued to stream again into the Landstar community. The variety of enterprise capability house owners elevated 7% year-over-year and 4% sequentially. Whole truck capability suppliers elevated 20% year-over-year and eight% from the third quarter.
New steerage forward of forecasts
Administration mentioned it expects present demand and tight TL fundamentals to proceed all through the primary quarter. Income is anticipated to be in a spread of $1.1 billion to $1.15 billion with EPS of $1.55 to $1.65. Each are forward of present consensus of $1.06 billion and EPS of $1.45, respectively.
“January of any given yr is often the slowest month of the yr. By means of the primary a number of weeks of January, the macroeconomic surroundings skilled all through the again half of 2020 continued, characterised by sturdy shopper demand, relative softness within the U.S. industrial/manufacturing sector relative to sectors servicing shoppers, and tight accessible truck capability,” acknowledged Gattoni.
The decision is for masses hauled by truck to extend within the high-single-digit proportion vary and income per load to be up by mid-teen percentages.
Landstar will maintain a convention name to debate these outcomes on Thursday at 8 a.m. Stayed tuned to FreightWaves for persevering with protection of Landstar’s fourth-quarter outcomes.