Why Is JB Hunt (JBHT) Up 5% Since Last Earnings Report?

In This Article:

It has been about a month since the last earnings report for JB Hunt (JBHT). Shares have added about 5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is JB Hunt due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Earnings Beat at J.B. Hunt in Q3

J.B. Hunt Transport Services' third-quarter 2024 earnings per share of $1.49 outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.

Total operating revenues of $3.07 billion surpassed the Zacks Consensus Estimate of $3.04 billion but declined 3% year over year. The downfall was owing to a 5% and 6% decrease in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decline in load volume of 10% and 6% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), respectively, and 6% fewer stops in Final Mile Services (FMS). These were partially offset by JBI load growth of 5%, which included growth in both the transcontinental and eastern networks and a 3% increase in revenue per load in ICS. Total operating revenues, excluding fuel surcharge revenue, decreased less than 1% from the year-ago reported quarter.

Operating income for the reported quarter decreased 7% year over yearto $224.1 million. The downfall was owing to lower revenues in all segments excluding JBI, and higher personnel-related, insurance and claims, and equipment-related expenses.

Segmental Highlights

Intermodal division generated quarterly revenues of $1.56 billion, flat year over year. JBHT witnessed solid demand for its Intermodal service throughout the quarter across both the transcontinental and eastern networks, aided by seasonal activity and strong performance from rail providers. Demand was solid on eastbound transcontinental loads out of Southern California which increased by a double-digit percentage from the prior-year quarter.

Transcontinental network loads increased 7% year over year, while eastern network loads increased 3% year over year.

Operating income decreased 13% year over yearowing to lower yields, which was only partially offset by the resulting impact of absorbing network and equipment costs with higher volume.

Dedicated Contract Services segment revenues fell 5% from the year-ago period to $846 million, owing to a 3% decline in average trucks and a 3% decline in productivity (revenue per truck per week).

Waiting for permission
Allow microphone access to enable voice search

Try again.