Growth Moderates in Landstar's Q2 as Truckload Spot Conditions Soften, but Results Mostly In Line

Wide-moat truck broker Landstar’s second-quarter total gross revenue grew 26%, which slowed relative to 53% growth last quarter. That said, this was a healthy showing, and we expected an easing on tough comps and because dry van truckload market spot activity and rates moderated as shipments shifted to the contract market. Recall Landstar has heavy spot exposure. Relative to the year-ago period, growth came from rising fuel surcharges and higher underlying dry van and flatbed demand across retail and industrial end markets. Further, although retail sector demand is probably softening slightly (sequentially) and dry van spot rates have eased, extremely tight TL-market capacity this past year has driven up pricing to historic levels.