Truck broker Landstar System lowered its second-quarter guidance in a filing with the Securities and Exchange Commission Tuesday after the market closed.
The Jacksonville, Florida-based company said each revenue and earnings will are available below the ranges it provided when it reported first-quarter results at the top of April. On the time, the corporate’s management team said that while the softer market trends experienced in the primary quarter had worsened somewhat in April, it expected a traditional seasonal uptick in May.
That didn’t materialize.
The brand new outlook calls for revenue of $1.325 billion to $1.375 billion, a 5.3% reduction from previous guidance assuming the midpoint of each ranges.
The change is predicated on loads hauled by truck being down 16%-18% yr over yr (y/y) in the primary seven weeks of the second quarter and revenue per load being off 14%-16%. The prior guide called for declines of 14%-16% and 12%-14%, respectively.
The brand new range for earnings per share is $1.75 to $1.85, which was lowered by 8% on the midpoint (15 cents lower on each end). The consensus estimate on the time of the Tuesday announcement was $1.97.
Shares of LSTR were down 2.9% in after-hours trading on Tuesday.
FreightWaves data shows truck capability continues to stay loose and spot rates are still looking for a floor. While carriers are hopeful that big-box retailers have burned off excess inventories, no retailer has yet signaled a fabric have to refill its distribution centers. As such, the industry awaits a more meaningful reduction in carrier operating authorities or a pickup in demand in industrial or consumer-related end markets.
Landstar’s filing said the guidance change was ahead of management’s appearance at Wolfe Research’s annual transportation conference on Wednesday.
At an investor conference last week, management teams from J.B. Hunt Transport Services (NASDAQ: JBHT) and Schneider National (NYSE: SNDR) stated that little had modified from the commentary they provided on their quarterly calls in April.
Each corporations had representatives on an intermodal panel on the Wolfe conference on Tuesday who said they were still waiting for demand to enhance and that the outlook for the back half of the yr remained uncertain.
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