J.B. Hunt quarterly net income falls 28%; revenue dips 6%

Lowell-based carrier J.B. Hunt Transport Services Inc. posted declines in earnings and revenue in the second quarter amid an ongoing freight market downturn. The company missed earnings and revenue estimates.

After the markets closed Tuesday (July 16), J.B. Hunt reported earnings fell by 28.3% to $135.87 million, or $1.32 per share, in the second quarter from $189.55 million, or $1.81 per share, in the same period last year. Revenue decreased by 6.5% to $2.92 billion from $3.13 billion.

Earnings missed expectations of $1.52 per share, based on a consensus of 17 analysts. Revenue missed analyst expectations of $3.04 billion.

In an earnings report, analyst Daniel Imbro and associates Joe Enderlin, Brady Lierz, Reed Seay, and Collin Nieman, all of Little Rock-based Stephens Inc., attributed the miss to lower earnings in the intermodal and dedicated segments and a higher tax rate and interest expense. This was partially offset by stronger results in the Final Mile Services and truckload segments.

In the earnings call, J.B. Hunt executives pointed to signs of improvement in the market but have yet to see that the market has reached an inflection point. Executives also noted the market is showing signs of more normal cyclical behavior closer to pre-pandemic levels and that they expect a peak season this year.

Darren Field, president of intermodal, cited improving momentum in the intermodal segment in the second quarter, including on-time performance that exceeded expectations. However, the intermodal bid season, which largely wrapped up in the second quarter, was competitive and resulted in negative pricing pressure and a headwind to margin performance.

Through the first half of 2024, J.B. Hunt’s earnings declined by 32% to $263.36 million from $387.32 million in the same period last year. Revenue decreased by 7.6% to $5.87 billion from $6.36 billion.

Shares of J.B. Hunt (NASDAQ: JBHT) closed at $170.60, down $5.40 or 3.07%. In the past 52 weeks, the stock has ranged between $153.12 and $219.51.

Following is a segment comparison of the second quarter to the same period last year.

Intermodal
Operating income fell to $99.24 million from $142.86 million. The segment’s income comprised 48% of the company’s income. Revenue fell to $1.4 billion from $1.48 billion. The segment’s revenue comprised 48% of the company’s revenue.

Dedicated
Operating income fell to $96.41 million from $113.61 million. The segment’s income comprised 47% of the company’s income. Revenue fell to $851.01 million from $887.59 million. The segment’s revenue comprised 29% of the company’s revenue.

Brokerage
The segment reported an operating loss of $13.28 million from a loss of $4.41 million. Revenue fell to $270.37 million from $343.69 million.

Final Mile Services
Operating income rose to $19.77 million from $14.82 million. Revenue increased to $235.29 million from $223.93 million.

Truckload
Operating income declined to $3.54 million from $3.79 million. Revenue decreased to $168.09 million from $191.8 million.