Landstar System Inc. (LSTR) recently posted 2010 second-quarter results. The company’s net income grew 36.3% to $24.4 million from $17.9 million in the year-ago period. Earnings per share came in at 49 cents, which was above the year-ago result of 35 cents as well as the Zacks Consensus Estimate of 48 cents.
Landstar is a non-asset based provider of integrated supply chain solutions. The company offers safe, specialized transportation, warehousing and logistics services through a worldwide network of more than 1,300 agent locations, 7,800 business capacity owners and 25,000 contract carriers and warehouse capacity owners.
Revenues during the quarter recorded a strong growth of 30.7% to $641.7 million from $491.2 million in the year-ago period amid a robust recovery in the freight environment. Landstar’s revenues from third-party truck capacity providers, which comprised 92% of total revenues, increased 30.5% year over year to $592.0 million aided by a 24.1% growth in revenue from rail, air and ocean cargo carriers to $35.0 million.
Landstar’s gross margin, which is revenues less purchased transportation and commissions to agents, reduced 90 basis points year over year to 16.3%. The decline was mainly caused by unfavorable revenue mix coupled with increased cost of purchased transportation. However, strong revenue growth led to a 34.3% year over year growth in Landstar’s operating income to $40.0 million, from $29.8 million in the year-ago period.
Landstar exited the quarter with cash and cash equivalents of $45.1 million and long-term debt-to-capitalization ratio of 29.4%, compared with a cash balance of $92.1 million and long-term debt-to-capitalization ratio of 19.0%. During the quarter, the company bought back 510,062 shares for a total consideration of $20.6 million. Landstar currently has a total authorization of 745,000 shares left under its common stock buy-back program.
Moving forward, Landstar expects strong recovery in the freight environment to drive performance in the third quarter of 2010. The company expects earnings per share in the third quarter to range between 47 cents and 52 cents. The guidance is in line with the Zacks Consensus Estimate of 51 cents per share, which moved up a penny in just the past week as 9 of 17 covering analysts raised expectations. For full-year 2010, the Zacks Consensus Estimate increased by 2 cents over the past week to $1.85 per share as 10 of 19 covering analysts raised projections.
Landstar is a non-asset based provider of integrated supply chain solutions. The company offers safe, specialized transportation, warehousing and logistics services through a worldwide network of more than 1,300 agent locations, 7,800 business capacity owners and 25,000 contract carriers and warehouse capacity owners.
Revenues during the quarter recorded a strong growth of 30.7% to $641.7 million from $491.2 million in the year-ago period amid a robust recovery in the freight environment. Landstar’s revenues from third-party truck capacity providers, which comprised 92% of total revenues, increased 30.5% year over year to $592.0 million aided by a 24.1% growth in revenue from rail, air and ocean cargo carriers to $35.0 million.
Landstar’s gross margin, which is revenues less purchased transportation and commissions to agents, reduced 90 basis points year over year to 16.3%. The decline was mainly caused by unfavorable revenue mix coupled with increased cost of purchased transportation. However, strong revenue growth led to a 34.3% year over year growth in Landstar’s operating income to $40.0 million, from $29.8 million in the year-ago period.
Landstar exited the quarter with cash and cash equivalents of $45.1 million and long-term debt-to-capitalization ratio of 29.4%, compared with a cash balance of $92.1 million and long-term debt-to-capitalization ratio of 19.0%. During the quarter, the company bought back 510,062 shares for a total consideration of $20.6 million. Landstar currently has a total authorization of 745,000 shares left under its common stock buy-back program.
Moving forward, Landstar expects strong recovery in the freight environment to drive performance in the third quarter of 2010. The company expects earnings per share in the third quarter to range between 47 cents and 52 cents. The guidance is in line with the Zacks Consensus Estimate of 51 cents per share, which moved up a penny in just the past week as 9 of 17 covering analysts raised expectations. For full-year 2010, the Zacks Consensus Estimate increased by 2 cents over the past week to $1.85 per share as 10 of 19 covering analysts raised projections.
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