J.B. Hunt’s earnings beat estimates, stock hits 52-week high

J.B Hunt Transport Services Inc. started the first three months of the year in impressive fashion, posting strong first quarter profits that easily beat analysts’ expectations and pushed the company’s stock to a 52-week high.

For the three-month period ended March 31, the Lowell-based trucking giant posted net earnings of $37.5 million, or 29 cents per share, compared to net earnings of $30.8 million, or 24 cents a share a year go.

Wall Street analysts predicted the Arkansas trucking operation would report earnings of 26 cents per share on sales on $789 million in revenue, according to Thomson Reuters. Hunt shares (JBHT: NASDAQ) rallied at the close of Wednesday’s trading, climbing 2.26%, or 82 cents, to close at $37.05. During the past 52 weeks, the share price has ranged from a $37.07 high to a $25.26 low.

The trucking firm’s “after-the-bell” results followed a stirring day on Wall Street, where U.S. stocks touched a 19-month high. The Dow Jones Industrial Average closed at 11,123.11, up nearly 1%.

Total operating revenue for the current quarter was $845 million, a 17% increase from $723 million for the first quarter 2009. The increase in operating revenue was primarily attributable to higher Intermodal segment volumes, significant growth in our Dedicated Contract Services (DCS) segment, higher volumes in our Integrated Capacity Solutions (ICS) segment and revenue growth in our Truck segment, the company said in a news release.

"The freight recession we have experienced for over three years, showed signs of yielding to moderate volume improvements throughout the current quarter. We believe that this is partly attributable to increases in our customers’ supply chain activities and partly due to a continued shrinkage of viable capacity,” Kirk Thompson, JBHT president and CEO, said in the statement.

Today’s trading rally began after banking giant J.P. Morgan’s earnings surged more than 55%, topping $3.3 billion in profits. J.B. Hunt rival, railroad operator CSX Corp., also reported that its profits rose 20% from a year earlier and reaffirmed its forecast of double-digit earnings growth for 2010.

The combined results for J.B. Hunt and CSX bode well for the trucking and transportation sector, which many investors and analysts see as “market bellwethers.”

“While the pace of the broader macro economic recovery may be debatable, our current quarter results reflect a positive trend in the freight economy,” Thompson said.

Still, Federal Reserve Chairman Ben Bernanke gave a cautious assessment of the U.S. economy in testimony Wednesday before a congressional committee. The Fed chief said the pace of the recovery this year will depend on if consumers start spending and companies invest enough to make up for fading government support.