J.B. Hunt beats Q4 2015 earnings expectations

The intermodal and trucking specialist posted a fourth quarter 2015 profit of $116.7 million and earnings per share of $1.01, surpassing analyst projections of $0.99 per share.    J.B. Hunt grew fourth quarter 2015 profits 5.8 percent to $116.7 million compared with the same period last year, according to the company’s most recent financial statements.
   The Lowell, Ark.-based intermodal and trucking provider posted earnings per share (EPS) of $1.01 for the quarter, beating analyst projections of $0.99 per share. Total operating revenues for the quarter stood at $1.62 billion, up 1 percent from Q4 2014 and in line with expectations.
   For the full year, J.B. Hunt’s net earnings jumped to nearly 14 percent year-over-year to $427.24 million on $6.2 billion in revenues. Full Year 2015 EPS was $3.66 per share, up 16 percent from $3.16 per share in 2014.
   The company attributed the increase in profits primarily to higher revenue in its Intermodal (JBI), Dedicated Contract Services (DCS) and Truck (JBT) segments, improved fuel economy and lower maintenance costs on newer equipment, less reliance on third party carriers in JBI and DCS, expanding gross margins in ICS and lower safety and insurance costs in JBT. These were partially offset by increased rail purchase transportation costs, driver pay and recruiting costs, and equipment ownership costs, J.B. Hunt said.
   Revenues from J.B. Hunt’s intermodal business unit, which makes up 59 percent of total operating revenues, inched up 1 percent to $967.1 million for the quarter. Total load volumes were up 6.3 percent in JBI, but revenue per load fell 5 percent.
   The dedicated contract services unit posted a 1.7 percent increase in revenues to $369 million thanks to new customers and base rate increases. Truck revenues stood at $99.3 million, up 3.1 percent from the fourth quarter of 2014.
   The company said the low cost of oil decreased fuel expenses 31 percent to $69.6 million, but that also caused fuel surcharge revenues to fall 44 percent to $148.7 million.
   Revenues from J.B. Hunt’s the Integrated Capacity Solutions segment fell 4 percent to $190 million.