J.B. Hunt releases report on 2017 performance, projects revenue increases across most segments

J.B. Hunt Transport Services of Lowell released its 2017 performance expectations Tuesday (Nov. 8) and projected revenue increases across all its business segments, except intermodal.

In that segment, the number of loads are expected to increase to between 2.03 million and 2.09 million, and the number of box turns is set to increase 1%, but revenue per load is expected to fall $5.

In dedicated contract services, revenue is projected to rise to between $1.6 billion and $1.65 billion, while productivity is expected to be flat. The number of trucks looks to increase to between 500 and 700.

Technology investment is set to jump 15%, or $19 million, while sales investment will rise 37%, with 17 additions.

Sales drivers for 2017 include healthcare, agriculture and food services.

In integrated capacity solutions or the logistics segment, revenue is expected to rise to between $950 million and $1.1 billion.

Technology investment will increase 15%, or $15 million.

Employees in the segment will reach about 800, from more than 750, while the number of branches will climb to more than 40, from about 35.

The following is what the segment’s business will be comprised of in 2017, compared to 2016: dry van will fall to 78%, refrigerated will rise to 12%, less than truckload will increase to 8% and flatbed will remain flat at 2%.

In its trucking segment, revenue will jump to between $410 million and $430 million while the number of trucks will rise between 100 and 120.

Regarding fleet age, the age of tractors will fall to about 2 years old, while age for trailers will rise to about 11 years old.

The number of company trucks will decline to 1,390, and the number of independent contractor trucks will increase to 933.

Capital expenses will fall to $477 million, including $219 million in growth, $175 million in replacement, $57 million in technology and $26 million in facilities.

Some of company’s risk factors include “irrational competitive pricing, rail cost increases, driver/contractor market tightening” and technology improvements, while opportunities are “improving rate cycle, technology upgrades, private fleets in target industries” and new markets.

In 2018 and 2019, the intermodal segment is expected to see continued rate recovery and for load growth to be greater than or equal to current market share; dedicated contract services will see new sales drivers in retail and dairy and its final mile program; integrated capacity solutions or logistics will see increases in branch profits and be focused refrigerated and flatbed services; trucking is projected for continued rate recovery and to maintain its size.

Shares of J.B. Hunt Transport (NASDAQ: JBHT) closed at $84.72 on Tuesday (Nov. 8), up $2.10 or 2.54%. In the past 52 weeks, shares have ranged between $63.58 and $89.43.

On Oct. 17, the carrier reported third-quarter earnings fell 4.9% to $109.42 million, from $115.13 million in the same quarter last year.