Landstar Earnings: Freight Brokerage Backdrop Remains Challenged, but Results Mostly in Line

Wide-moat truck broker Landstar’s fourth-quarter gross revenue fell 28% year over year but was mostly in line with our forecast. The key theme throughout 2023 was that muted retailer restocking, sluggish industrial end markets, and the swing to loose truckload industry capacity drove down load volumes and sell-rates to shippers, especially relative to strong levels posted during the pandemic-driven freight surge. Furthermore, shipments Landstar handles for other trucking and logistics providers normalized relative to robust levels seen during the capacity crunch.