Landstar System, a freight broker, reported fourth-quarter earnings that met expectations but provided a disappointing outlook for the first quarter. The company’s earnings per share of $1.62 were in line with estimates but lower compared to the previous year due to an extra operating week in the year-ago quarter. Total revenue of $1.2 billion was 28% lower year over year, falling short of management’s guidance. Despite a 22% decrease in total loads hauled by trucks, the revenue per load was down 9.6%, below the midpoint of management’s guidance range.
Jim Gattoni, Landstar’s president and CEO, attributed the decline in revenue to soft demand, particularly in the U.S. manufacturing sector, and a weaker peak season. The company anticipates a decline in first-quarter revenue and loads hauled by truck, with revenue per load expected to decrease as well. Variable contribution fell by 24% year over year, while the contribution margin improved slightly.
Landstar generated $394 million in cash flow from operations in 2023, marking a 37% decline from the previous year. The company will be hosting a call to discuss its fourth-quarter results with analysts on Thursday.
