Insurance claims adjustments tank Landstar’s otherwise strong Q3
Despite insurance claims activity clouding an otherwise strong third-quarter result, truckload broker Landstar System highlighted favorable demand for its dry van and flatbed offerings on Tuesday, driven by tight capacity and data center buildouts. The post Insurance claims adjustments tank Landstar’s otherwise strong Q3 appeared first on FreightWaves .
Landstar System, a truckload broker, reported strong third-quarter earnings but was hampered by insurance claims activity. The company's President and CEO, Frank Lonegro, noted that excluding the insurance and claims line, the company would have reported solid results. Landstar's earnings per share were $1.42, 24 cents lower than the analyst consensus.
The shortfall was due to $13 million in adverse adjustments to claims reserves and $8 million in unfavorable events on prior-year claims. Despite this, consolidated revenue increased 25% year-over-year to $1.51 billion, with total truck revenue growing 29% y/y to $1.41 billion. Dry van loads increased 6% y/y with revenue per load up 23%, while flatbed loads rose 4% y/y with yield up 29%.
Heavy-haul demand was also strong. The company's carrier list shrank from over 100,000 in 2022 to nearly 68,000 in the latest quarter, primarily due to cargo theft concerns and deteriorating TL market conditions. Despite the challenges, Landstar's BCO truck count increased by 165 units sequentially to 8,709, marking the largest sequential increase since the 2021 third quarter.
Written by urgent.news from FreightWaves's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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