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Landstar System 4Q earnings rise 38 percent

October 24, 2011

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JACKSONVILLE, Fla.—Freight services provider Landstar System Inc. said Monday that third-quarter profit rose 38 percent on increased revenue from hauling freight.

The Jacksonville, Fla., company reported net income of $30.2 million, or 64 cents per share, in the quarter ending Sept. 24, compared with $21.8 million, or 44 cents per share, in the same period a year earlier.

Revenue was up 9.8 percent to $684 million.

The earnings beat Wall Street's forecasts. Analysts polled by FactSet expected earnings of 62 cents per share on revenue of $681.3 million.

The company said in a statement that truck transportation revenue hauled by independent carriers who contract with Landstar, and brokerage carriers, was $625.8 million in the quarter, compared with $573.5 million a year earlier.

"During the 2011 third quarter, the growth rate in the number of loads hauled increased each month," Chairman and CEO Henry Gerkens said in the statement.

Landstar cautioned that fourth-quarter revenue in recent years has been "somewhat inconsistent," especially late in the quarter. But trends in September and October indicate continued strength in revenue per load and load volume, the statement said.

Gerkens said in the statement that assuming the trends continue through the fourth quarter, he expects earnings per share of 62 cents to 67 cents.

Shares of Landstar rose 91 cents, or 2 percent, to $45.11 in premarket trading Monday.