Landstar Earnings: Truck Brokerage Backdrop Still Bouncing Along the Bottom, but Execution Steady

Wide-moat truck broker Landstar System’s first-quarter gross revenue fell 18% year over year and came in below our expected run rate. The operating backdrop for truck brokers continued to face lackluster retailer restocking and abundant truckload market capacity, which has weighed heavily on spot volume and pricing for more than a year. Additionally, shipments Landstar handles for other trucking and logistics providers has normalized relative to robust levels seen during the capacity crunch.