J.B. Hunt 3Q earnings falls 18%, revenue down 3%

Lowell-based carrier J.B. Hunt Transport Services Inc. posted earnings and revenue declines in the third quarter that weren’t as weak as analysts expected amid a lingering freight recession. The company’s after-hours share price was up over $11, or more than 6%.

After the markets closed Tuesday (Oct. 15), J.B. Hunt reported net income declined by 18.8% to $152.06 million, or $1.49 per share, in the third quarter from $187.43 million, or $1.80 per share, in the same period last year. Revenue decreased by 3% to $3.06 billion from $3.16 billion.

J.B. Hunt beat earnings expectations of $1.41 per share, based on a consensus of 21 analysts. The company also beat revenue expectations of $3.02 billion.

In an earnings report, analyst Daniel Imbro, senior associates Joe Enderlin and Brady Lierz, and associate Reed Seay, all of Little Rock-based Stephens Inc., attributed the beat to stronger intermodal earnings, lower brokerage losses, stronger truckload margins and slightly higher dedicated earnings. This was partially offset by the lower final mile income and higher interest expense.

“Intermodal volume exceeded normal seasonality,” the analysts said. “And the sequential margin improvement was notable given the competitive bid season this year…We were also impressed by the (dedicated) margin performance, given commentary last quarter on a negative mix-shift of new business wins. All-in the stronger quarter should allay fears around out-year numbers, and we expect a strong reaction.”

In an earnings call, J.B. Hunt executives noted ongoing freight challenges but more normal seasonal demand patterns and a mixed demand outlook for peak shipping season in the fourth quarter. The company has improved on safety performance levels so far this year from a record 2023 and recently completed the installation of inward-facing cameras.

“There’s still so much that we have to do,” said Shelley Simpson, president and CEO at J.B. Hunt. “We are still battling our way through this part of the freight cycle, and I think that’s really important. So, we’re going to maintain our focus on excellence for our customers, driving value, and we’re going to battle through the last part of this freight recession. There’s still too much capacity in the market. We need that market to really move into more of equilibrium. We’re looking forward to seeing how that plays out into 2025.”

Through three quarters, net income declined by 27.7% to $415.43 million, or $4.03 per share, from $574.75 million, or $5.50 per share, in the same period last year. Revenue decreased by 6.1% to $8.94 billion from $9.52 billion.

Shares of J.B. Hunt (NASDAQ: JBHT) closed Tuesday at $174.65, down 81 cents or 0.46%. In the past 52 weeks, the stock has ranged between $153.12 and $219.51.

Following are third-quarter results by company segment compared to the same period last year.
Intermodal
Operating income declined to $111.78 million from $127.97 million, while revenue narrowly increased to $1.556 billion from $1.555 billion. The segment comprised half of the company’s operating income and 51% of its revenue in the third quarter.

Dedicated
Operating income declined to $95.51 million from $102.43 million, while revenue fell to $845.96 million from $892.25 million. The segment comprised 43% of the company’s operating income and 28% of its revenue in the third quarter.

Brokerage
The segment reported a $3.25 million loss compared with a $9.37 million loss. Revenue declined to $278.17 million from $298.01 million.

Final Mile
Operating income fell to $12.02 million from $12.97 million, while revenue decreased to $218.31 million from $225.92 million.

Truckload
Operating income increased to $8.15 million from $7.71 million, while revenue fell to $173.22 million from $196.33 million.