2014 Income Up Almost 10% For J.B. Hunt, Revenue Hits $6.16 Billion
by January 22, 2015 9:51 am 153 views
Rate increases across its business divisions was the primary reason Lowell-based J.B. Hunt Transport Services boosted its fiscal year revenue to $6.165 billion, a 10.4% increase over fiscal 2013. Net income for the year was $374.792 million, up 9.46% compared to the 2013 period.
The full-year per share earnings of $3.16 also beat the consensus estimate of $3.12.
For the fourth quarter, the company earned $118.078 million, just under the $118.96 million in the same period of 2013. The fourth quarter per share income of 93 cents also beat the consensus estimate of 89 cents.
“The increase primarily reflects higher revenue in all business segments and the current benefit of rapidly falling fuel prices during the quarter, net of lower fuel surcharge revenue primarily in DCS and JBT,” the company noted in its earnings report released Thursday (Jan. 22) before the markets opened. “These benefits were partially offset by increased costs paid to hire and retain drivers; higher workers’ compensation and accident costs; and higher costs of equipment ownership.”
Hunt’s intermodal segment posted fiscal year revenue of $3.687 billion, better than the $3.456 billion in fiscal 2013. Full-year operating income in the segment was $460.377 million, up over the $447.030 million in 2013. Operating income in this segment was 73% of the total full-year income for J.B. Hunt.
The dedicated services segment had $1.393 billion in revenue for the year, up more than 13% compared to 2013. Operating income in 2013 for the segment was $117.243 million, better than the $110.438 million in 2013.
Full-year revenue from the brokerage and logistics division (Integrated Capacity Solutions) was $718.076 million, much better than the $536.844 million in 2013. Operating income in the segment was $29.88 million, almost double the $15.693 million in 2013.
The company’s truck segment posted fiscal 2014 revenue of $385.603 million, below the $391.086 million in 2013. However, operating income for the segment was $24.223 million, a big jump over the $3.658 million in 2013. Company officials said rising rates and “rapidly declining fuel prices” helped boost income in the segment.
Traders rewarded the positive earnings report, with early morning moves seeing Hunt shares (NASDAQ: JBHT) up over 90 cents. The shares closed Wednesday at $82.04. During the past 52 weeks the share price has ranged from a high of $85.54 to a $69.33 low.