Landstar Earnings: Retail and Industrial End Markets Remain Soft in the Third Quarter

Wide-moat truck broker Landstar's third-quarter gross revenue fell 29% year over year, though declines weren't far off our forecast. In short, muted retailer restocking, sluggish industrial end markets, and the swing to loose truckload industry capacity continue to pressure freight demand and sell-rates to shippers, especially relative to strong levels a year ago. We also note that shipments Landstar handles for other trucking and logistics providers have diminished relative to robust levels seen during the capacity crunch.