Insurance claims adjustments tank Landstar’s otherwise strong Q3
Despite insurance claims activity clouding an otherwise strong third-quarter result, truckload broker Landstar System highlighted favorable demand for its dry van and flatbed offerings on Tuesday, driven by tight capacity and data center buildouts.
Truckload broker Landstar System noted strong demand for its dry van and flatbed offerings on its third-quarter call with analysts on Tuesday. A tightened capacity backdrop and the buildout of data centers are shaping the favorable fundamentals. However, insurance claims activity clouded an otherwise solid result.
“You can look down the P&L and if you skip one line known as insurance and claims, you’d have a lot of good news to write home about,” said Landstar President and CEO Frank Lonegro.
Landstar (NASDAQ: LSTR) reported third-quarter earnings per share of $1.42, which was 24 cents below the consensus estimate. The miss was attributable to $13 million (29 cents per share) in adverse adjustments to claims reserves and $8 million (18 cents per share) in unfavorable developments on two prior-year claims.
The result was 20 cents better than the adjusted EPS result from a year ago, which excluded several non-recurring items.
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