Landstar System Inc. last week raised its earnings forecasts for the first quarter.
After previously forecasting revenue of $925 million to $975 million and earnings of $1.22 to $1.27 per share, the Jacksonville-based trucking company said in a Securities and Exchange Commission filing it now projects revenue of $1.03 billion to $1.05 billion and earnings of $1.35 to $1.40 per share.
The company said it announced the new forecast to a group of analysts during a meeting for Landstar’s independent sales agents.
“The momentum we experienced closing out 2017 has carried over into 2018. We continue to drive strong year over year volume growth and are currently experiencing an exceptional pricing environment,” CEO Jim Gattoni said, according to the SEC filing.
Buckingham Research analyst Matthew Brooklier said in a research note that Landstar’s new forecast is in line with industry trends.
“Given our recent truckload carrier checks – which confirmed a robust demand and more so pricing environment during the first quarter – we were not completely surprised by the upside report,” Brooklier said.
However, he added, “the magnitude of the beat was notable as Landstar’s operating model has less relative operating leverage when compared to our covered asset-based names.”
Landstar’s operating model is different than asset-based trucking companies because Landstar doesn’t own trucks, but contracts with drivers through its network of agents to haul freight.