Earnings Watch: Lower J.B. Hunt Numbers Kick off 3rd Quarter Reports
Third quarter earnings for the nation’s trucking companies began rolling in on Monday, following reports of lowered expectations as several negative factors weigh on the nation’s freight markets.
J.B. Hunt Transport Services Inc. (NASDAQ:JBHT) reported net earnings slipped to $109.4 million, or 97 cents per share, compared to $115.1 million, or 99 cents per share, a year earlier.
Total operating revenue for the most recent quarter was $1.69 billion, compared with $1.59 billion for the third quarter 2015. This topped a consensus estimate by analysts survey by Zacks Investment Research, but the per-share performance was 5 cents less than expected.
Operating income for the current quarter totaled $183 million compared $194 million for the third quarter 2015. The Arkansas-based company attributed the decline mainly to lower customer rates in its intermodal, brokerage and trucking segments, increased rail purchase transportation rates, lower box turns, increases in driver wages and recruiting costs, losses on the sale of used equipment, increased legal and consulting costs, and higher equipment maintenance and ownership costs.
J.B. Hunt’s intermodal segment, which makes up nearly two-thirds of its operating income, saw revenue increase 2% in the third quarter from a year ago to $970 million as its operating income fell 7% to $116.9 million. This happened despite overall volume increasing 7%. Revenue per load fell 4.2% including fuel surcharges. Revenue per load excluding fuel surcharges fell 2%.
The company’s dedicated operations saw revenue increase 6% to $394 million as operating income moved 16% higher to $52.5 million. This was attributed to a near 3% increase in revenue per truck per week, including fuel surcharge. Without the fuel surcharge the hike was approximately 4%. The dedicated operation has added 205 trucks to its operations over the past year, including 50 in the second quarter.
“Approximately 75% of these additions represent private fleet conversions versus traditional …Read the rest of this story
