J.B. Hunt Transport Services missed first-quarter expectations Tuesday, reporting earnings per share of $1.22 compared to the consensus estimate of $1.50. A higher tax rate was a 7-cent headwind in the quarter.
Intermodal revenue fell 9% year over year (y/y) as revenue per load was off by a similar amount (down 5% from the fourth quarter). Total loads were flat y/y but 9% lower than in the fourth quarter. A 92.7% operating ratio (operating expenses as a percentage of revenue) was 370 basis points worse than the year-ago quarter.
Management called out “weaker than expected” demand and higher wages, equipment costs and insurance premiums as the culprits. Management said in February that bid season negotiations for its intermodal and truckload offerings were soft.
Click for full report – “J.B. Hunt’s long-term intermodal growth plan weighs on Q1 result”
J.B. Hunt’s (NASDAQ: JBHT) brokerage unit reported a $17.5 million operating loss as loads declined 22% y/y, with revenue per load down just 5%. The unit lost $15 million in the fourth quarter. Higher insurance expenses and integration costs from the acquisition of BNSF Logistics’ (NYSE: BRK.B) brokerage operations were headwinds.
Dedicated revenue was off slightly y/y, the combination of fewer trucks in service and lower revenue per truck per week. An 89.1% OR was just 80 bps worse y/y.
The company’s truckload segment was barely profitable as loads and yields declined. The final-mile segment saw operating income more than double to $15.1 million as revenue per stop increased 10% y/y. The result included a $3.1 million claims benefit.
J.B. Hunt will host a call at 5 p.m. EDT on Tuesday to discuss first-quarter results.
Click for full report – “J.B. Hunt’s long-term intermodal growth plan weighs on Q1 result”
Jacob's Son
They don’t pay the drivers. That’s how they were making their huge profits. Pay is crap and health insurance is for the birds. #THENEWAMERICANWAY
Rob
They need to stop underquoting to get businesses. They are the problem!
riley
hate to say this but these numbers look like a management (mismanagement) problems. All the numbers are low looks like they are not allocating their resources properly
What's happening news
Automated Bot that Sue’s trucking companies using voice recordings and a handful of words parroting on the telephone.
Dick Johnson
If JB does not already have your load he is on his way to get it.
Duke the god
They’ve turned there entire focus and money on tightening up on there security and carrier compliance department. They’ve made it impossible for carriers to get setup with them not to mention all the carriers they’ve filtered out. How do you expect to hit numbers when there’s no carriers on your loadboard picking up loads? I won’t even get started on there per mile rate of $1.40 per mile nationwide. Jb hunt let’s stop focusing all our resources on all the scammers and fraud going on in Armenia and let’s focus on improving what made your company great in the first place.
Sukhwinder Singh
Jb Hunt broker are very cheap and they don’t pay even expenses to carriers