J.B. Hunt 1Q revenue, earnings dip, but beat estimates

Lowell-based carrier J.B. Hunt Transport Services Inc. posted declines in earnings and revenue in the first quarter but narrowly beat analyst expectations of larger declines. After-hours trading showed the company’s stock was down about 6%.

After the markets closed Tuesday (April 15), J.B. Hunt reported net income fell by 7.6% to $117.74 million, or $1.17 per share, in the first quarter from $127.49 million, or $1.22 per share, in the same period last year. Revenue decreased by 0.76% to $2.92 billion from $2.94 billion.

J.B. Hunt beat earnings expectations of $1.14 per share in the first quarter, based on a consensus of 21 analysts. The carrier also beat projections that revenue would fall by 1.42%.

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 higher intermodal volumes, lower brokerage losses, and lower taxes and interest expense. This was partially offset by softer Final Mile Services profitability and lighter truckload earnings.

The analysts said intermodal volume was not as strong as normal seasonality, down 6.8% from the fourth quarter compared to a five-year average of down 5.4%. But it was better than expected after a strong second half of 2024. The company has also made progress on cutting brokerage expenses, and if this continues, the segment could return to profitability this year.

Stephens analysts maintained an overweight (buy) rating on J.B. Hunt shares. The 12-month target price was $170, and it is under review.

In the earnings call, J.B. Hunt executives said the company’s results were as expected, as safety metrics continued to improve and intermodal volumes hit a record for the third consecutive quarter. Executives said they are working to cut costs and boost productivity and margins. They also spoke about how the company and its customers are scenario planning but were uncertain about how the tariffs might impact their business.

“We recognize things are changing, and you know, that’s changing by the day or the tweet or the moment,” said J.B. Hunt CEO Shelley Simpson. “And so for us, you know, we want to be fluid, and we need to make sure that our plans align as conditions change.”

Shares of J.B. Hunt (NASDAQ: JBHT) closed Tuesday at $135.11, down $2.71 or 1.97%. In the past 52 weeks, the stock has ranged from $127.05 to $200.40.

Following are by segment financial results for the first quarter compared to the same period last year.

• Intermodal
  • Operating income fell to $94.38 million from $101.88 million. Revenue rose to $1.46 billion from $1.39 billion. The segment accounted for 53% of the company’s income and half its revenue.
• Dedicated
  • Operating income declined to $80.27 million from $93.64 million. Revenue decreased to $822.29 million from $860.01 million. The segment accounted for 45% of the company’s income and 28% of its revenue.
• Brokerage
  • The segment posted an operating loss of $2.66 million compared to a $17.54 million loss in the same period last year. Revenue fell to $268.04 million from $285.28 million.
• Final Mile Services
  • Operating income fell to $4.67 million from $15.08 million. Revenue declined to $200.70 million from $229.28 million.
• Truckload
  • Operating income rose to $2.04 million from $1.22 million. Revenue decreased to $166.62 million from $178.31 million.