J.B. Hunt beats Q2 estimates

Intermodal container turns improve slightly from Q1

Todd Maiden

2 years ago

A white J.B. Hunt tractor pulling a white trailer on highway

J.B. Hunt Transport Services reported second-quarter earnings per share of $2.42 Tuesday after the market closed. The result beat analysts’ expectations by 11 cents and outpaced the year-ago result by 81 cents.

J.B. Hunt’s (NASDAQ: JBHT) largest segment, intermodal, reported a 42% year-over-year increase in revenue to $1.83 billion as loads increased 8% and revenue per load jumped 32%. Revenue per load excluding fuel surcharges was 20% higher y/y.

The division’s operating ratio improved 60 basis points in the quarter to 88.9%, but slow rail service and delays at customer facilities negatively impacted costs and efficiency. Container turns were nearly level y/y at 5x and better than the 4.8x logged in the first quarter. The operating result included $7.7 million in incremental insurance-related expenses.

Click for full article: “J.B. Hunt overcomes slow rail service in Q2 beat”

“Demand for intermodal capacity remained strong throughout the quarter, however rail velocity and customer behavior negatively impacted network efficiencies and container utilization, and ultimately, our ability to execute even greater volume in the quarter,” a news release stated.

Dedicated revenue was up 39% y/y at $863 million. Loads increased 13% and revenue per truck per week climbed 14%. Excluding fuel surcharges, revenue per truck per week was up 5%. Higher rates were partially offset by service inefficiencies at startup accounts. The division had more than 2,100 additional revenue-producing trucks when compared with the second quarter of 2021.

The dedicated OR deteriorated 240 bps to 89.7% due to wage and comp increases, recruiting expenses, new account startup costs, and an uptick in bad debt expense, among other items.

Brokerage revenue ticked 3% higher y/y as loads fell 3% and revenue per load climbed 5%. The division’s gross margin was up 570 bps to 16.2% and operating income was nearly eight times higher at $24 million. The result was negatively impacted by $6.7 million of net pretax insurance expense.

Final-mile revenue increased 20% with operating income up by a similar amount at $13 million. Truckload revenue was up nearly 50% and the unit’s OR improved 160 bps to 90.7%.

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.