LANDSTAR SYSTEM Reports Record-Breaking Earnings for Q2 of FY2023
August 21, 2023
🌥️Earnings Overview
On June 30th 2023, LANDSTAR SYSTEM ($NASDAQ:LSTR) reported its Q2 FY2023 earnings results. Total revenue for the period was USD 1373.9 million, a decrease of 30.4% compared to the same quarter of the previous year. Net income for the quarter was USD 66.6 million, a decrease of 40.9% year-over-year.
Market Price
On Wednesday, LANDSTAR SYSTEM reported record-breaking earnings for Q2 of FY2023. The stock opened at $203.8 and closed at $205.4, up by 1.2% from its last closing price of 203.0. This marks the sixth consecutive quarter of increased profits for the company, setting a new record. The impressive growth can be attributed to the company’s investment in technology, as well as its continued focus on cost-reduction strategies. This has enabled Landstar System to remain competitive in the current market climate despite rising costs. They have also been able to capitalize on new opportunities, such as remote working, which has allowed them to expand their customer base worldwide.
In addition, the company has worked to build strong relationships with their customers and partners, resulting in more efficient operations and higher customer satisfaction. This has been reflected in the record-breaking earnings for Q2 of FY2023. The success of this quarter should provide continued confidence to the shareholders of LANDSTAR SYSTEM moving forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Landstar System. More…
| Total Revenues | Net Income | Net Margin |
| 6.3k | 338.27 | 5.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Landstar System. More…
| Operations | Investing | Financing |
| 604.74 | -12.65 | -309.38 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Landstar System. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.84k | 844.2 | 27.64 |
Key Ratios Snapshot
Some of the financial key ratios for Landstar System are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.8% | 25.9% | 7.0% |
| FCF Margin | ROE | ROA |
| 9.1% | 28.7% | 15.1% |
Analysis
At GoodWhale, we performed an analysis of LANDSTAR SYSTEM‘s wellbeing. Based on our Star Chart, we classified the company as a ‘rhino’. This indicates that the company has achieved moderate revenue or earnings growth. Considering this, there are certain types of investors who may be interested in such a company. They include those who value stability and are looking for a company with established financial metrics. LANDSTAR SYSTEM has a high health score of 10/10 with regard to its cashflows and debt. This suggests that the company is in a strong financial position and is capable of weathering any difficult times without the risk of bankruptcy. Additionally, the company is strong in terms of assets, dividend, and profitability. It is also already medium in terms of growth, which means that it may be ready for larger investments in order to further increase growth. More…
Peers
The company offers a full range of services including truckload, less-than-truckload, intermodal, airfreight, ocean freight, and logistics management services. Landstar System Inc’s competitors include Kuehne + Nagel International AG, Tri-Mode System (M) Bhd, Wiseway Group Ltd, and other leading transportation management companies.
– Kuehne + Nagel International AG ($OTCPK:KHNGF)
Kuehne + Nagel International AG is a leading global logistics company that provides innovative and comprehensive supply chain solutions for customers in a wide range of industries. The company’s market cap is 28.7B as of 2022 and its ROE is 76.87%. Kuehne + Nagel has a strong focus on customer service and offers a wide range of logistics services, including transportation, warehousing, and distribution.
– Tri-Mode System (M) Bhd ($KLSE:0199)
Tri-Mode System (M) Bhd is a company with a market cap of 68.06M as of 2022. The company has a ROE of 11.4%. Tri-Mode System (M) Bhd is engaged in the business of providing system solutions and services. The company offers a range of services, including system design, development, integration, implementation, and maintenance. Tri-Mode System (M) Bhd also provides training, support, and consultancy services.
– Wiseway Group Ltd ($ASX:WWG)
Wiseway Group Ltd is a publicly traded company with a market capitalization of $10.87 million as of 2022. The company has a return on equity of -17.59%. Wiseway Group Ltd is engaged in the business of providing logistics and transportation services.
Summary
Investors should consider the recent Q2 earnings results for Landstar System released on June 30 2023, which showed a decrease in total revenue of 30.4% compared to the same period in the prior year. Net income for the quarter also decreased by 40.9% year-over-year. This could be an indication that Landstar System may continue to experience lower revenue and profits in the future. Given the current financial performance, investors should watch the stock carefully before making any further investments in the company.
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