J.B. Hunt Q4 results mixed; earnings up 1%, revenue down 4%

by Jeff Della Rosa ([email protected]) 710 views 

Lowell-based carrier J.B. Hunt Transport Services Inc. posted an earnings increase but a revenue decline in the fourth quarter amid a prolonged freight downturn. Earnings fell 21% in 2024 from 2023, while revenue decreased 5%.

After the markets closed Thursday (Jan. 16), J.B. Hunt reported earnings rose 1.2% to $155.45 million, or $1.53 per share, in the fourth quarter from $153.53 million or $1.47 per share, in the same period in 2023. Revenue fell 4.76% to $3.14 billion from $3.3 billion.

For 2024, earnings fell 21.6% to $570.88 million, or $5.56 per share, from $728.28 million, or $6.97 per share, in 2023. Revenue declined 5.79% to $12.08 billion from $12.82 billion.

J.B. Hunt missed fourth-quarter earnings of $1.62 per share, based on a consensus of 21 analysts. It narrowly missed revenue estimates of $3.15 billion. The company missed 2024 earnings of $5.65 per share, based on a consensus of 23 analysts. It narrowly missed revenue estimates of $12.09 billion.

In a fourth-quarter earnings report, analyst Daniel Imbro, senior associates Joe Enderlin and Brady Lierz, and associate Reed Seay, all of Little Rock-based Stephens Inc., said J.B. Hunt’s results included $16 million in “intangible asset impairments” in the brokerage segment and attributed the earnings miss to lower brokerage margins, lower Final Mile Services results, higher taxes and slightly lower dedicated segment revenue. This was partially offset by lower interest expenses and stronger intermodal earnings.

“Intermodal volume exceeded normal seasonality, and the sequential margin improvement to 7.3% was notable given the company’s intra-quarter commentary around increased costs,” the analysts said. “While the ‘core’ results here were ahead of consensus, we do believe they are slightly below investor expectations.”

In the earnings call, J.B. Hunt executives said intermodal volumes were at record levels over the past two quarters. Still, segment margins have been under pressure, and intermodal pricing, set at levels in the previous bid season, will largely remain in place through the first half of this year. The rates being set in the current bid season will largely not be in place until the second half of this year.

Executives also noted the uncertainty of the inflection in the market from the freight downturn.

Shelley Simpson

“Our focus in 2025 is to grow and to begin to repair our margin,” said President and CEO Shelley Simpson. “We will be coming out of the freight recession from a position of strength. We believe the value we create for our customers, with our capacity and our exceptional service levels, are unique in the market and that our returns should mirror this value.”

Chief Financial Officer John Kuhlow highlighted the company’s record safety performance over the past two years. However, over the period, the company’s insurance premiums have more than doubled because of the higher cost to resolve claims.

“This is an industry challenge, and these inflationary costs will need to be passed on to shippers and eventually consumers,” Kuhlow said.

Shares of J.B. Hunt (NASDAQ: JBHT) closed Thursday at $186.42, down 13 cents or 0.07%. In the past 52 weeks, the stock has ranged between $153.12 and $219.51.

SEGMENT RESULTS
Following are results by segment in the fourth quarter compared to the same period in 2023, followed by a year-over-year comparison.

Intermodal
Operating income fell to $116.95 million from $129.89 million. Revenue declined to $1.59 billion from $1.62 billion. The segment comprised 56% of the carrier’s total operating income and 51% of revenue in the fourth quarter.

For 2024, operating income declined to $429.87 million from $569.38 million. Revenue fell to $5.95 billion from $6.2 billion. The segment comprised 52% of the carrier’s total operating income and 49% of revenue in 2024.

Dedicated
Operating income rose to $90.3 million from $86.14 million. Revenue fell to $838.52 million from $883.87 million. The segment comprised 44% of the carrier’s total operating income and 27% of revenue in the fourth quarter.

For 2024, operating income decreased to $375.87 million from $404.75 million. Revenue fell to $3.39 billion from $3.54 billion. The segment comprised 45% of the carrier’s total operating income and 28% of revenue in 2024.

Brokerage
The segment posted a loss of $21.81 million compared with a loss of $24.94 million. Revenue fell to $307.63 million from $363.66 million. For 2024, the segment reported a loss of $55.89 million from a loss of $44.11 million. Revenue declined to $1.14 billion from $1.39 billion.

Final Mile
Operating income increased to $13.17 million from $12.29 million. Revenue declined to $227.54 million from $243.16 million. For 2024, operating income rose to $60.05 million from $46.71 million. Revenue decreased to $910.43 million from $918.1 million.

Truckload
Operating income rose to $8.55 million from a loss of $39,000. Revenue fell to $181.95 million from $195.43 million. For 2024, operating income increased to $21.47 million from $16.46 million. Revenue declined to $701.58 million from $789.43 million.