Freight market improvement — The company 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% year over year, while the number of loads hauled via truck rose about 2%.
Insurance and claims costs — Increased insurance and claims expense, mainly from unfavorable development of prior years’ claims, negatively impacted Q2 results.
Q2 results beat estimates
U.S. freight logistics firm Landstar said second-quarter revenue rose 18% year over year, beating analyst expectations.
The current average analyst rating on the shares is hold, with 2 strong buy or buy ratings, 13 hold ratings, and 2 sell or strong sell ratings. 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 versus a P/E of 28 three months ago.
Management sees freight market improving
Landstar said freight transportation market conditions are rapidly improving. The company also said the insurance claims environment remains challenging for freight transportation providers.
Landstar intends to continue paying quarterly dividends following the 10% increase.
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