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J.B. Hunt handily beats 2Q expectations

Dedicated revenue and income came in better than expected

Link to full article on J.B. Hunt’s second quarter

J.B. Hunt Transport Services’ (NASDAQ: JBHT) first quarter was much better than feared. The company reported earnings per share of $1.14, 9 cents per share lower than the year-ago result but well ahead of the 83-cent consensus estimate.

Total revenue declined 5% year-over-year at $2.15 billion but was only off 0.5% excluding fuel surcharge revenue.

Operating income of $175.2 million was down 9.3% year-over-year. The company cited higher purchased transportation costs, technology investments and increased operating costs from COVID-19 as some of the headwinds. A total of $4.6 million of “uncollectible customer accounts” resulted in increased charges during the period as well.

Intermodal revenue was 7.4% lower year-over-year as loads were off 1.5% and revenue per load declined 5.9%. Revenue per load excluding fuel was flat year-over-year.

Dedicated revenue was off only 0.7% year-over-year at $533 million. Loads improved nearly 7% in the period with revenue per truck per week declining 3.4%. This was better than the expectation for flat loads sequentially, which implied a year-over-year decline. Further, the division’s operating ratio was 140 basis points better year-over-year at 84.4%.

Brokerage and final mile recorded losses in the period. The truck division reported a more than 17% year-over-year increase in loads with revenue per truck per week backing up somewhat. Revenue per loaded mile excluding fuel surcharges declined 7% from the year-ago period, and contractual rates were down approximately 5%.

The company hosts a conference call Thursday evening and FreightWaves plans to provide commentary from the call in a later article.

J.B. Hunt’s Key Performance Indicators

Click for more FreightWaves articles by Todd Maiden.

Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.

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