J.B. Hunt earnings flat in Q2 2016

The intermodal and trucking provider saw second quarter net earnings tick up 1.9 percent year-over-year to $105 million on revenues that grew 5 percent to $1.62 billion.    J.B. Hunt’s profits were relatively flat in the second quarter of 2016, ticking up 1.9 percent to $105 million compared with the same 2015 period, according to the company’s most recent unaudited financial statements.
   The Lowell, Ark.-based intermodal and trucking provider posted earnings per share (EPS) of 92 cents for the quarter compared with 88 cents per share for the second quarter of 2015. Analysts polled by Thomson Reuters had predicted J.B. Hunt’s EPS would reach $0.97 per share.
   Operating income inched up 1 percent to $176 million on revenues that grew 5 percent year-over-year to $1.62 billion, just beating analyst expectations.
   The company attributed the flat profit growth primarily to increased volumes, higher revenue producing truck counts and higher equipment utilization, which were “substantially” offset by increased rail transportation costs, higher driver wages and recruiting costs, and increased equipment ownership costs.
   Operating income in J.B.Hunt’s intermodal business unit (JBI) fell 11 percent to $105.6 million compared with the second quarter of 2015. JBI’s revenues rose 3 percent year-over-year to $933 million thanks to a 9 percent increase in volumes that were offset slightly by a 5 percent dip in revenue per load.
   The dedicated contract services segment saw operating income surge 24 percent to $50.5 million on revenues that grew 4 percent to $383 million. The growth was primarily the result of increased revenues, improved asset utilization, and a reduction in overall safety costs, partially offset by higher costs for driver wages and recruiting, benefits and equipment ownership.
   Operating income in the integrated capacity solutions segment shot up 122 percent to $10.9 million for the quarter on revenues that jumped 17 percent to $204 million. The segment’s volumes grew 62 percent compared with the second quarter of 2015, while revenue per load dropped 28 percent due to freight mix changes driven by customer demand and lower fuel prices.
   The company’s trucking segment JBT posted an operating income of $8.9 million, down 9 percent from the prior year, on revenues that inched up 1 percent to $98 million.
   J.B.Hunt had net capital expenditures for the six months ended June 30, 2016 of around $258 million compared with $299 million for the same 2015 period.
   Looking forward to the rest of 2016, J.B. Hunt issued an updated full year guidance on overall operating income and revenues. The company now projects a 5 percent increase in operating income on a 7 percent bump in anticipated annual revenues.