Landstar Saw Market Deteriorate In Last Week Qf Quarter, Issues No 2Q Guidance

Asset-light third-party logistics provider Landstar System Inc. LSTR on Wednesday reported first-quarter 2020 earnings per share of $1.04, modestly lower than the consensus estimate of $1.10 and well off the year-ago report of $1.58.

In a press release, President and CEO Jim Gattoni commented that trends for the first 12 weeks of the year "performed as we anticipated." However, that came undone during the final week of the quarter as stay-at-home mandates spread.

Citing the "highly unpredictable economic environment," the company is not providing second-quarter 2020 earnings guidance.

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"We believe our 2020 first quarter results and operating trends will in no way provide any indication regarding what our financial results may be with respect to Landstar's 2020 second quarter," Gattoni stated.

In highlighting the company's variable cost structure, the release went on to outline a scenario in which the company could generate second-quarter earnings in the range of 70-85 cents per share on a revenue decline of 20% to 30%.

"This in no way should be interpreted as any sort of guidance, but rather a demonstration of the resiliency of the Landstar model, and that Landstar's ability to generate earnings is somewhat insulated from the possible effects of a prolonged recession."