Landstar System Inc. has been very confident about their business lately. In the fourth quarter alone, there has been a new expectation. A new expectation of earnings. It’s been “slightly above” usual. Good going for the truck broker! Jim Gattoni, the CEO of Landstar, has made mention that recently, truck demand and rates have skyrocketed. Do you suppose that may be because of the pandemic, or sheer luck?

Only Landstar knows!

With dips often occurring in the flatbed market, a third of Landstar and their business has leveled off. This has made it evident that flatbed demand has been, until this year, been unsteady. But rates still can be on the rise here and there. It’s all heavy-haul and good for all. With a broader rate increase in flatbed markets, similar to verticals such as metals and weak machinery.

Truck loads are becoming above the higher end of the range from before. It’s easy to tell by the way the revenue looks that each load per truck shipments average ahead of the low-double-digit ups.

The guide had an original calling for $1.15 billion to $1.20 billion. This therefore gave earnings per share $1.61 to $1.71, without the additioanl 29 cents per share. Adjusted, the EPS number actually goes by 2 cents when the actual real cost of the buyout turns out to be an approximate $15.5 million. Otherwise known as 31 cents per share.

What makes this cycle way different is that plenty expect inventory replacement. There aren’t enough qualified drivers allowing for trucking capacity to hold on for a period way longer than the other cycles.

With caution, Gattoni says “they’re going to put more trucks into the system and we’re going to cycle back like we always do.” Such is the way of the warrior CEO.

In the meantime, Landstar is adding high-density freights on a contractual basis. Impressive!