J.B. Hunt Transport Services Inc. (Nasdaq: JBHT) of Lowell on Monday reported a drop in revenue and profits in the first quarter of fiscal 2023.
The company reported revenue of $3.2 billion, slightly more than 7% lower than $3.5 billion in the same quarter of 2022. J.B. Hunt’s income was $197.8 million, a nearly 19% drop from $243.3 million a year ago.
Earnings per share was $1.89, down from $2.29.
The results did not meet Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $2.04 per share.
The trucking and logistics company posted revenue of $3.23 billion in the period, also falling short of Street forecasts. Five analysts surveyed by Zacks expected $3.43 billion.
The company said there were drops in demand in the Integrated Capacity Solutions, Intermodal and Final Mile Services segments. ICS and FMS had declines of 25% and 17% in volume in the first quarter.
Shares of the company fell about 2% in after-hours trading Monday. For the year to date, shares are up about 2%.
Quarterly revenue for the company’s largest segment was $1.5 billion, down from $1.6 billion. Operating income was $168.7 million, down from $200.9 million. The segment saw loads drop from 510,736 to 486,091 while revenue per load rose slightly from $3,139 to $3,167.
Dedicated Contract Services
Quarterly revenue was $879.1 million, up from $776.1 million. Operating income was $102.6 million, up from $79.7 million. Revenue per truck per week increased from $4,824 to $5,060 while the number of trucks in operations increased by more than 500 to 13,325.
Integrated Capacity Solutions
Quarterly revenue was $384.8 million, down from $658.9 million. Operating income was a loss of $5.4 million, down from a profit of $24.2 million. The segment saw a drop in overall loads, from 271,869 to 202,531, while revenue per load also dropped from $2,424 to $1,900.
The company said $251 million of the ICS quarterly revenue was generated through its Marketplace for J.B. Hunt 360°, down from $430 million a year ago.
Final Mile Services
Quarterly revenue was $225.1 million, down from $234.9 million. Operating income was $6.6 million, up from $660,000.
Quarterly revenue was $205.9 million, down from $229.5 million. Operating income was $4.99 million, up from $28.9 million. Revenue per load dropped from $2,518 to $2,084, offsetting an increase in total loads in the quarter.
The Associated Press contributed information to this report.