J.B. Hunt, Bank of the Ozarks post positive earnings

First-quarter earnings of $50.1 million for J.B. Hunt Transport Services best analyst estimates, with the company’s intermodal segment again leading the positive results.

Also, Bank of the Ozarks reported lower net income as acquisition and conversion costs weighed on the company’s results.

J.B. HUNT
The per-share earnings for the Lowell-based trucking and logistics company was 40 cents, better than the average analyst estimate of 38 cents per share.

Of the company’s four segments, intermodal generated the most quarterly revenue, reaching $577 million, up 23% compared to the 2010 quarter. Operating income in the segment reached $62.6 million, up 32%.

The company said new intermodal operations in Mexico and expanded intermodal service in the eastern U.S. helped offset an “extremely harsh winter” that slowed rail service in some markets. The company, which reports about 48,300 containers and trailers in the intermodal segment, was also able to boost segment pricing by an average of 4% during the quarter.

Hunt’s dedicated contract services segment posted revenue of $238 million, up 15% compared to the 2010 quarter. Operating income in the segment was $18.6 million, up 1%.

In what may be some insight into the health of the overall economy, the company reports increased demand for its dedicated trucking service.

“This combination of new contracts plus significant demand from our current customer base has created a need to purchase additional revenue equipment, as well as continue to transfer other assets from existing, underperforming accounts,” noted the company’s earnings release.

The company’s trucking segment — it’s original business — posted revenue of $119 million and operating income of $5.8 million, up 6% and 866%, respectively. The company is reviewing its fuel surcharge program to better handle fuel prices that “increased significantly” during the quarter.

The integrated capacity solutions segment posted revenue of $75 million and operating income of $2.6 million, up 22% and 126%, respectively.

“With the effects of winter weather and rapidly rising fuel costs, it was a tough quarter to get through as well as we did,” John Roberts, J.B. Hunt president and CEO, said of the company’s overall performance during the quarter.

Hunt shares (NASDAQ: JBHT) opened at $45.51 in Thursday trading, and gained more than 4.5% in early trading. During the past 52 weeks, the share price has ranged from a $46.86 high to a $31.51 low.

BANK OF THE OZARKS
It was a profitable quarter for the Little Rock-based bank. Bank of the Ozarks posted first quarter net income of $14.6 million, down 8% from $16 million one year ago.

“We are very pleased to report excellent results for the first quarter of 2011," CEO George Gleason. "Highlights of the quarter included our best quarterly net interest margin as a public company, record net interest income, another profitable acquisition and favorable results for service charge income and asset quality.”

Deposits for Bank of the Ozarks rose to $2.58 billion at March 31, 2011, an increase of 14.5% compared to $2.25 billion at March 31, 2010.

Total assets were $3.33 billion at March 31, 2011, an increase of 10.2% from $3.02 billion at March 31, 2010.

Bank of the Ozarks most recently acquired its fifth out-of-state bank, Oglethorpe Bank in Georgia, in the first quarter of 2011.

“In recent years our strong earnings have resulted in significant increases in our capital ratios. We believe we will have numerous opportunities over the next several years, including opportunities for additional FDIC-assisted acquisitions, to profitably deploy this accumulated capital,” Gleason said.

The bank’s shares (NASDAQ: OZRK) closed Wednesday at $44.16, down 76 cents. During the past 52 weeks, the share price has ranged from a $45.43 high to a $33.41 low.