Higher Costs Cut Into J.B. Hunt’s 2Q Profit
by July 18, 2016 10:27 am 147 views
J.B. Hunt Transport Services Inc. attributed second-quarter profit of $105 million to steady growth and higher volumes in its four segments, but cost increases dampened the positive earnings report.
Reporting before markets opened Monday, the Lowell-based carrier posted net income of 92 cents per share, for the quarter that ended June 30, compared to last year’s net income of $103 million, or 88 cents per share.
Revenue rose 5 percent to $1.62 billion.
The company missed the average earnings estimate of 97 cents per share, according to analysts surveyed by Thomson Reuters.
Load growth boosted revenue for J.B. Hunt’s intermodal and Integrated Capacity Solutions, or logistics, segments, up 3 percent and 17 percent, respectively.
Its Dedicated Contract Services segment gained 4 percent in revenue, and truck segment revenue was up less than 1 percent.
“The benefits of volume growth, increases in revenue producing truck counts and higher equipment utilization, were substantially offset by increase in rail purchased transportation costs, higher driver wages and recruiting costs and increased equipment ownership costs,” the company said in a news release.
By mid-morning Monday, J.B. Hunt’s shares had fallen $2.51, or 2.94 percent, and were trading at $82.76 on the Nasdaq. Shares have traded between $63.58 and $89.43 in the past year.