JB Hunt Second Quarter Results Miss Estimates

(RTTNews) - Surface transportation company JB Hunt Transport Services, Inc. (JBHT) reported Friday a profit for the second quarter that increased from last year, primarily reflecting double digit revenue growth amid load growth at three of its four operating segments. Both earnings per share and quarterly revenues missed analysts' expectations.

The Lowell, Arkansas-based company reported net earnings of $87.70 million or $0.73 per share for the second quarter, higher than $80.45 million or $0.67 per share in the prior-year quarter. On average, 28 analysts polled by Thomson Reuters expected the company to report earnings of $0.74 per share for the second quarter. Analysts' estimates typically exclude special items.

Total operating revenues for the quarter increased 10 percent to $1.38 billion from $1.26 billion in the same quarter last year, but missed twenty-two Wall Street analysts' consensus estimate of $1.40 million. Operating revenues, excluding fuel surcharges, rose 11 percent from last year.

The revenue growth was primarily attributable to load growth of 12 percent in Intermodal (JBI) and 29 percent in Integrated Capacity Solutions (ICS) and also double-digit revenue growth at Intermodal, integrated capacity solutions and dedicated contract services segments.

Segment-wise, intermodal or JBI segment reported revenues of $855 million, up 12 percent from last year. Dedicated contract services segment revenues increased 13 percent to $303 million, while truck segment revenues declined 20 percent to $101 million from last year. Integrated capacity solutions segment's revenues increased 20 percent to $132 million from last year.

Dedicated Contract Services revenue increased as new, large private fleet conversions continue to be implemented, while truck revenue decreased primarily due to a smaller fleet and lower utilization.

Operating income for the quarter grew 7 percent to $147 million, while operating margins contracted 20 basis points to 10.7 percent from last year, reflecting a 20 basis points increase in total operating expenses as a percentage of total revenues.

Total operating expenses for the quarter were $1.24 billion, up from $1.12 billion in the prior-year quarter.

In Monday's regular trading session, JBHT is currently trading at $75.58, down $0.15 or 0.20% on a volume of 0.18 million shares. In the past 52-week period, the stock has been trading in a range of $50.56 to $77.76.