Landstar System Inc. reported lower second-quarter earnings and revenue, as expected, and the Jacksonville-based trucking company sees that trend continuing.
“We don’t expect much change to the overall freight economy in the 2023 third quarter compared to what we experienced in the 2023 first half,” CEO Jim Gattoni said in Landstar’s quarterly conference call with analysts July 27.
“Demand for freight transportation is expected to remain relatively soft in the 2023 third quarter, continuing to drive truckload volumes significantly lower compared to 2021 and 2022,” he said.
“It is difficult to forecast truckload volume levels beyond the next few months as future economic conditions are very unpredictable.”
Landstar reported earnings of $1.85 a share on revenue of $1.374 billion, down from earnings of $3.05 and revenue of $1.975 billion in the second quarter of 2022.
Gattoni said Landstar’s revenue grew 140% from the second quarter of 2020, when the coronavirus pandemic first hit the economy, to the second quarter of 2022.
“Since hitting peak quarterly revenue in the 2022 second quarter, Landstar has experienced a down cycle during which quarterly revenue has thus far decreased each quarter over the past four quarters,” he said.
“Demand continues to be soft, which makes the timing of the end of down cycle less predictable,” he said.
Landstar is projecting third-quarter earnings of $1.65 to $1.75 a share on revenue of $1.275 billion to $1.325 billion.
Third-quarter 2022 earnings were $2.76 a share on revenue of $1.816 billion.
Anheuser-Busch announced plans to lay off 2% of its U.S. employees but said it won’t affect frontline employees, including brewery and warehouse staff, drivers and field sales.
The U.S. unit of Belgium-based Anheuser-Busch InBev SA/NV has 12 U.S. breweries, including one in Jacksonville, and employs about 19,000 people in the U.S.
The company’s media relations department did not respond to questions about the number of employees at its Jacksonville plant at 111 Busch Drive on the Northside.
In an emailed statement July 28, the company said the “elimination of positions across every corporate function at Anheuser-Busch” is intended to “simplify and reduce layers within its organization.”
“While we never take these decisions lightly, we want to ensure that our organization continues to be set for future long-term success,” U.S. CEO Brendan Whitworth said in the statement.
According to its website, the Jacksonville brewery produces Budweiser, Bud Light, Busch Light, Natural Light and Michelob Ultra beers.
Bud Light sales have dropped over the past three months because of a boycott related to the company’s marketing partnership with transgender advocate Dylan Mulvaney.
Morgan Stanley analyst Sarah Simon said in a July 20 research report that U.S. revenue has fallen by about 13.5% because of the boycott, but she doesn’t expect it to have a major impact on the company’s stock, which she rates at “overweight.”
“Clearly, this is a big deal: Bud Light was America’s number one beer until this development and represented 30% of Anheuser-Busch InBev’s U.S. sales in 2022,” she said.
“However, this needs to be put into context globally: while the U.S. is obviously a huge market, ABI is a truly global, and thus geographically diversified, brewer.”
Simon estimates the boycott is reducing the company’s total sales by about 4%.
Anheuser-Busch InBev is scheduled to report second-quarter earnings Aug. 3.
Dream Finders Homes Inc.’s stock tripled in price in the first half of 2023, but that followed a big drop in 2022.
In an annual letter to shareholders sent July 28, CEO Patrick Zalupski said he can’t worry about managing the company based on its stock price.
“The divergence in 2022 between our 110% basic EPS growth and our 55% share price decline should illustrate that I am laser focused on the former and cannot dictate the latter!” he wrote.
“It is true that it feels better when the stock price is higher, but at the end of the day we are steadfast in creating long term value for our shareholders and too often we see short term decisions being made in hopes of elevating one’s share price,” he said.
“What matters to the managers of DFH is continuing to build a great business that is focused on generating high returns on equity and long term sustainable per share earnings growth.”
Jacksonville-based Dream Finders grew substantially after its October 2021 acquisition of Texas company McGuyer Homebuilders Inc.
Zalupski’s letter said the company would consider more acquisitions to grow the company.
“While nothing is imminent, it continues to be reasonable to assume we will be opportunistic with acquisitions in the future,” he said.
“We believe DFH offers a very compelling partner for anyone looking to sell their homebuilding business.”
Zalupski said Dream Finders is looking for “win-win” situations for both parties in a deal, as it has in past acquisitions.
“It is very important for sellers to know the employees that helped them build these great businesses are taken care of. The vast majority have stayed on with DFH and many are thriving in our entrepreneurial culture,” he said.
The St. Joe Co. reported second-quarter revenue jumped 88% to $128.1 million and earnings doubled to $34.7 million, or 60 cents a share.
The Panama City Beach-based real estate developer said revenue grew in each of its business segments, which include residential homesite sales, commercial development, and hotel development and operations.
“Housing demand in our region is solid,” CEO Jorge Gonzalez said in a July 26 news release.
“The biggest driver to housing demand in our region is the net migration that is occurring from a wider range of geographies,” he said.
St. Joe was a longtime Jacksonville-based conglomerate that moved its headquarters to the Florida Panhandle in 2010 to focus on developing its large land holdings in that region.
Cenntro Electric Group Ltd. reported higher first-quarter revenue despite a lower number of vehicle sales, as the New Jersey-based electric commercial vehicle maker opened its Jacksonville plant.
Revenue rose 90% to $3.5 million, while sales volume of 129 vehicles was 22 fewer than in the first quarter of 2022.
The company’s revenue benefited from higher vehicle prices and from spare-part revenue.
“The first quarter of 2023 was highlighted by the expansion of the Howell, New Jersey facility and the opening of the Jacksonville facility in the U.S. to support demand, large-scale deployment and sales expansion in U.S. regional markets,” CEO Peter Wang said in a July 25 news release.
Cenntro first announced plans in late 2021 to build the plant in the Lane Industrial Park in Northwest Jacksonville.
Margo Caribe Inc. reported second-quarter sales fell 16% to $14.1 million but earnings rose 31% to $3.1 million, or 78 cents per share.
Jacksonville-based Margo Caribe produces home and garden products through subsidiary Margo Outdoor Living Inc.
“We were pleased with our ability to increase pre-tax income despite lower sales by reducing operating expenses and improving gross margins as supply chain logistic costs continue to normalize back to pre-pandemic levels,” CEO Michael Spector said in a July 26 news release.