J.B. Hunt Transport Services Inc. of Lowell on Tuesday reported third-quarter net income of $102.4 million, or 87 cents per share, up 14 percent from $89.5 million, or 75 cents per share.
The publicly traded trucking and logistics company (Nasdaq: JBHT) also reported total operating revenue of $1.6 billion, up 12 percent from the same time last year.
The company beat analyst estimates for earnings per share and revenue.
In a news release (PDF), J.B. Hunt said quarterly operating income rose came amid load growth, higher productivity and rate increases, which offset issues caused by crowded rail service, increases in driver recruiting costs, higher rates by third-party carriers, higher equipment costs and other factors.
The company reported increased operating revenue in all but one of its four segments, Truck, which was down 1 percent to $96 million. Operating income rose in all four segments.
The company’s biggest segment, Intermodal, reported third-quarter revenue of $964 million, up 8 percent from the same time last year. Operating income rose 6 percent to $125 million.
“Increased costs to attract and retain drivers, increased outsourced dray costs, higher insurance and claims costs, higher equipment costs and an increase in operating supplies compared to prior year partially offset the increased revenue,” the company said of the segment.
J.B. Hunt’s Dedicated Contract Services segment reported revenue up 13 percent to $361 million and operating income up 17 percent to $34.3 million.
Integrated Capacity Solutions segment boosted revenue 35 percent to $185 million, and operating income rose 197 percent to $8.4 million. The company attributed to the triple-digit growth to increased revenue and higher profit margins.
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