J.B. Hunt Sees Q4 Profit Fall on Weaker Demand


J.B. Hunt Sees Q4 Profit Fall on Weaker Demand
John Roberts III, CEO of J.B. Hunt Transport Services Inc. (Photo provided)

J.B. Hunt Transport Services Inc. of Lowell (Nasdaq: JBHT) on Wednesday reported lower fourth-quarter profit on softer demand in its Intermodal and Integrated Capacity Solutions segments.

The company posted net income of $201.3 million, a 16.9% drop from $242.2 million in the same quarter a year ago.

The income came on revenue of $3.65 billion, an increase from $3.5 billion a year ago; the company had surpassed $3.8 billion in revenue the previous two quarters. Earnings per share was $1.92, down from $2.28.

Both revenue and earnings per share were below Wall Street expectations. Nine analysts surveyed by Zacks Investment Research had an average EPS estimate of $2.95, while six analysts surveyed by Zacks had an average revenue estimate of $3.79 billion.

Shares of the company were up 4% midday Tuesday. 

For the fiscal year, J.B. Hunt reported revenue of $14.8 billion, up from $12.2 billion, and income of $969.4 million, up from $760.8 million. EPS for the year was $9.21, up from $7.14.

The company’s results by segment are below.

Intermodal

Intermodal volume decreased 1% over the same period in 2021. Quarterly revenue was $1.75 billion, up 11% from $1.6 billion. The company reported operating income of $179.5 million, down 8% from $195.3 million.

For the year, revenue was $7 billion, up from $5.5 billion, while operating income was $800 million, up from $602.5 million.

Dedicated Contract Services

Quarterly revenue was $880.2 million, up 24% from $712.4 million. The company reported operating income of $75.8 million, up 4% from $72.6 million.

For the year, revenue was $3.4 billion, up from $2.6 billion, while operating income was $345.2 million, up from $304.1 million.

Integrated Capacity Solutions

Quarterly revenue was $496.2 million, down 33% from $738.9 million. The company reported an operating income loss of $2.9 million, compared to $21.2 million.

J.B. said revenue per load decreased due to changes in customer freight mix and lower contractual and transactional rates in its truckload business.

For the year, revenue was $2.4 billion, down from $2.5 billion, while operating income was $59.2 million, up from $46.3 million.

J.B. Hunt said $307.6 million of ICS quarterly revenue was generated by its Marketplace for J.B. Hunt 360°, down from $431.4 million; for the year, Marketplace generated $1.5 billion in revenue, down $1.58 billion.

Truckload

Quarterly revenue was $275.6 million, up 6% from $259.1 million. The company reported operating income of $16.9 million, down 3% from $25.9 million.

Trailer turns in the quarter were down 21% from the prior period primarily due to freight mix and fewer load opportunities as a result of a softer freight market.

For the year, revenue was $1.1 billion, up from $795.9 million, while operating income was $92.4 million, up from $64.9 million.

Final Mile Services

Quarterly revenue was $254.8 million, up 15% from $221.9 million. The company reported operating income of $12.6 million, up 70% from $7.4 million.

J.B. Hunt said the increase in operating income was primarily driven by an improvement in revenue quality, which was partially offset by higher equipment-related and maintenance costs and increased insurance expenses. 

For the year, revenue was $979.99 million, up from $841.9 million, while operating income was $34.9 million, up from $27.9 million.

The Associated Press contributed information to this story.


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