Landstar System

Landstar still waiting for break in freight recession

Broker Landstar System said it’s readying for an inflection, noting largely normal seasonal trends on its first-quarter call. The fact that it isn’t in cost-cutting mode like the asset-based operators is a bit of a reprieve from the carnage this earnings season has delivered. 

The company beat expectations for the first quarter, but its second-quarter guidance was light of consensus.

Landstar (NASDAQ: LSTR) reported earnings per share of $1.32 for the 2024 first quarter, which was 4 cents ahead...

https://www.freightwaves.com/news/landstar-still-waiting-for-break-in-freight-recession

Landstar adds 2 new sales roles to the C-suite

Freight broker Landstar System said Monday it has added two new members to its executive team. The roles were filled from within.

Matt Dannegger is now the company’s chief field sales officer, which will oversee the recruitment and management of independent sales agents. Landstar works with more than 1,000 agents currently. Dannegger was most recently senior executive vice president of agent field sales. He has been with the company for 16 years.

Jim Applegate is now Landstar’s (NASDAQ: LSTR)...

https://www.freightwaves.com/news/landstar-adds-2-new-sales-roles-to-the-c-suite

Landstar says 2 more quarters before recovery

Broker Landstar System is still pointing to “midyear” as the likely inflection point to the prolonged freight recession. Management from the company said most cycles last between six and eight quarters, noting that the fourth quarter was the sixth straight of revenue declines.

Landstar (NASDAQ: LSTR) reported fourth-quarter earnings per share of $1.62 Wednesday after the market closed. The result was in line with the consensus estimate but 98 cents lower year over year (y/y). The recent period...

https://www.freightwaves.com/news/landstar-says-2-more-quarters-before-recovery

Landstar CEO Jim Gattoni to retire

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Freight broker Landstar System announced Monday a succession plan for the dual role of president and...

https://www.freightwaves.com/news/landstar-ceo-jim-gattoni-to-retire

Trucking heads kick can further into 2024

Truckload carriers and 3PLs have seen little change in demand halfway through the fourth quarter, and some are pointing deeper into 2024 before the market corrects.

The comments came from heads of some of the largest publicly traded TL providers at Stephens 25th Annual Investment Conference in Nashville, Tennessee, on Tuesday. The sentiment aligns with a Tuesday report from freight payments platform Cass Information Systems (NASDAQ: CASS), which said October produced a cycle low for shipments.

Fre...

https://www.freightwaves.com/news/trucking-heads-kick-can-further-into-2024

Landstar sees continuation of soft freight market in Q4

Broker Landstar System reported an in-line third-quarter result Wednesday after the market closed. However, its fourth-quarter outlook was light of expectations.

Landstar (NASDAQ: LSTR) reported third-quarter earnings per share of $1.71, in line with the consensus estimate but $1.05 lower year over year (y/y). The company reported a 29% y/y decline in total revenue to $1.289 billion. Both results were near the middle of management’s guidance ranges.

Total truck transportation revenue was off 27%...

https://www.freightwaves.com/news/landstar-sees-continuation-of-soft-freight-market-in-q4

Landstar not ready to call market bottom

Management at freight broker Landstar System said the market continues to stay soft and that a positive inflection likely won’t occur until the end of this year at the earliest.

“I would not declare bottom yet,” Jim Gattoni, president and CEO, told analysts on a Thursday morning call. He said if normal cycle durations hold, the market would start to tighten by late 2023 or early 2024, but he noted it will take better consumer demand before a recovery is realized.

Landstar (NASDAQ: LSTR) reported...

https://www.freightwaves.com/news/landstar-not-ready-to-call-market-bottom

Different court findings of broker liability raise prospect of another Supreme Court trip 

A decision handed down Tuesday in favor of 3PL GlobalTranz sets up the possibility of another attempt to have the Supreme Court review the issue of broker liability when things go horribly wrong on the road.

The 7th Circuit Court dismissed an appeal from Ying Ye, the widow of Shawn Lin, who was killed in November 2017 while riding a motorcycle that collided with a truck operated by carrier Global Sunrise. That carrier, with a safety record described in the court documents as less than stellar,...

https://www.freightwaves.com/news/different-court-findings-of-broker-liability-raise-prospect-of-another-supreme-court-trip

RXO outlook cut to negative but important debt rating not reduced

RXO has hung on to its BB+ rating from S&P Global, but the outlook on the company has been dropped down one level.

RXO, spun off from XPO (NYSE: XPO) last fall, was given a BB+ rating by S&P Global Ratings at the time the brokerage company became a separate entity. At the same time, RXO was also given a “positive” outlook by S&P, which suggested that credit and market conditions for the company were strong enough so that an increase in the rating was possible in the coming 12 months.

That move...

https://www.freightwaves.com/news/rxo-outlook-cut-to-negative-but-important-debt-rating-not-reduced

Landstar navigates downturn in Q4, points to summer recovery

Freight broker Landstar System joined a chorus of carriers, logistics providers and analysts Thursday, saying it expects a turnaround in market conditions by this summer.

Management from the company told analysts on its fourth-quarter earnings call that trucking cycles historically last 12 to 18 months. February 2022 was the peak for Landstar, which points to a market recovery this summer, assuming normal time frames hold.

“Being a believer in cycles, I would project that things will start to...

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