Revenue and income up for J.B. Hunt in 2019, but misses estimates

Fourth quarter and full year income and revenue for Lowell-based J.B. Hunt Transport Services topped 2018 comparisons, but missed market expectations. Shares of the logistics and shipping company fell more than 5% in early Friday trading.

Full year net income was $516.32 million, above the $489.585 million in 2018, according to the earnings report posted Friday (Jan. 17). Total revenue for the year was $9.165 billion, up from the $8.614 billion in 2018. Per share earnings for the year was $4.75. The per share consensus estimate for the year was $5.38, and the revenue estimate was $9.17 billion.

Fourth quarter net income was $144.676 million, well above the $88.681 million in the same period of 2018. Total revenue in the quarter was $2.45 billion, ahead of the $2.317 billion in the same period of 2018. Per share earnings for the quarter was $1.35. The per share consensus estimate for the quarter was $1.50, and the revenue estimate was $2.46 billion.

SEGMENT FINANCIALS
• Intermodal division
Revenue
4Q 2019: $1.267 billion
4Q 2018: $1.263 billion

2019: $4.744 billion
2018: $4.716 billion

Operating Income
Revenue
4Q 2019: $131.097 million
4Q 2018: $32.445 million

2019: $447.479 million
2018: $400.999 million

“JBI total volumes increased 2% over the same period in 2018. Eastern network loads decreased by 8% and transcontinental loads grew by 8% compared to the fourth quarter 2018. Revenue increased less than one percent, reflecting the 2% increase in volume offset by a 1% decrease in revenue per load, the combination of freight mix, customer rate increases, and fuel surcharges. Revenue per load excluding fuel surcharges was flat compared to a year ago,” the company noted in the earnings report.

• Dedicated Contract Services
4Q 2019: $716.94 million
4Q 2018: $595.809 million

2019: $2.694 billion
2018: $2.163 billion

Operating Income
Revenue
4Q 2019: $79.565 million
4Q 2018: $59.416 million

2019: $268.579 million
2018: $193.419 million

“DCS revenue increased 20% during the current quarter over the same period 2018. Productivity (revenue per truck per week) increased approximately 9% vs. 2018. Productivity excluding fuel surcharge revenue increased approximately 11% from a year ago primarily from the February 2019 acquisition, customer rate increases, improved integration of assets between customer accounts, and increased customer supply chain fluidity,” the company noted in the earnings report.

• Integrated Capacity Solutions
Revenue
4Q 2019: $376.537 million
4Q 2018: $345.4 million

2019: $1.348 billion
2018: $1.234 billion

Operating Income
Revenue
4Q 2019: ($11.843 million)
4Q 2018: $16.142 million

2019: ($11.088 million)
2018: $50.167 million

“ICS revenue increased 9% in the current quarter vs. the fourth quarter 2018. Volume increased 3% and revenue per load increased 5.5%, mostly due to customer mix changes, compared to the prior year. Contractual volumes represent approximately 73% of the total load volume and 65% of the total revenue in the current quarter compared to 71% and 53%, respectively, in fourth quarter 2018.Of the total reported ICS revenue, approximately $225 million was executed through the Marketplace for J.B. Hunt 360 compared to $174 million in fourth quarter 2018,” the company noted in the earnings report.

• Trucking
Revenue
4Q 2019: $93.64 million
4Q 2018: $117.707 million

2019: $389.301 million
2018: $417.351 million

Operating Income
Revenue
4Q 2019: $6.321 million
4Q 2018: $14.737 million

2019: $29.046 million
2018: $36.568 million

“JBT revenue decreased 20%from the same period in 2018. Revenue excluding fuel surcharges also decreased approximately 21% primarily from an 11% decrease in rates per loaded mile and a 9% decrease in load count compared to a year ago. Comparable contractual customer rates were flat compared to the same period 2018. At the end of the period, JBT operated 1,831 tractors compared to 2,112 a year ago,” the company noted in the earnings report.

The J.B. Hunt share price (NASDAQ: JBHT) was at $113.06 in mid afternoon trading, down more than 5.6%. During the past 52 weeks the share price has ranged between $83.64 and $122.29.