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J.B. Hunt handily beats Q1 expectations

Intermodal volumes advance, bucking industry trend

J.B. Hunt rig on highway (Photo: Jim Allen/FreightWaves)

J.B. Hunt Transport Services reported first-quarter 2022 earnings per share of $2.29 Monday after the market closed, 92 cents better year-over-year and 35 cents ahead of the consensus estimate.

Gains on equipment sales were a tailwind, up $18 million year-over-year.

Consolidated revenue increased 33% year-over-year to $3.49 billion with all the company’s segments reporting an increase. Revenue was 27% higher year-over-year excluding the impact of fuel surcharges.

Click for full article – “J.B. Hunt sees runway for high demand; small carriers could struggle”

J.B. Hunt’s (NASDAQ: JBHT) operating income increased 61% year-over-year to $334 million “primarily due to higher volumes, customer rate and cost recovery efforts, and further scaling of investments in our people and technology,” a press release read. The increase in gains on sale was also a contributor.

The company’s largest segment, intermodal, booked revenue of $1.6 billion, a 36% increase from the year-ago quarter. Loads were up 7% year-over-year compared to total Class I rail traffic, which was down 7% in the quarter. Revenue per load (+27.5%) outpaced costs per load (+22.8%), driving 340 basis points of operating ratio improvement at 87.5%.

Dedicated revenue increased 28% year-over-year to $741 million, but revenue per truck per week (+6%) was flat excluding fuel surcharges. The division reported 240 bps of OR deterioration at 89.6%. Increases in wages, benefits and recruiting costs, as well as labor disruptions at customer facilities and contract startup costs, were the culprits.

Brokerage revenue was up 29% year-over-year in the quarter as loads increased 12% and revenue per load was 14% higher. Gross margin increased 60 bps to 13% with operating income up by more than three times at $25 million.

The company will host a call at 5 p.m. EDT Monday to discuss results with analysts. Stay tuned to FreightWaves for continuing coverage of J.B. Hunt’s earnings announcement.

Click for full article – “J.B. Hunt sees runway for high demand; small carriers could struggle”

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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.