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J.B. Hunt Profit Falls 30% in Q3

2 min read

J.B. Hunt Transport Services Inc. of Lowell (Nasdaq: JBHT) on Tuesday reported a sharp drop in revenue and income for the third quarter of fiscal 2023.

Revenue for the quarter was $3.2 billion, down 17.5% from $3.8 billion in the same quarter a year ago. Income was $187.4 million, down 30.4% from $269.4 million a year ago; earnings per share was $1.80, down from $2.57.

It is the fourth consecutive quarter the company has reported a decline in revenue and the third consecutive quarter it has reported a decline in income.

J.B. Hunt said the quarterly declines were mostly a result of lower load revenues in its intermodal and truckload, as the transportation industry is still dealing with a freight recession.

The company announced during the quarter that it’s acquiring BNSF Logistics, the brokerage subsidiary of BNSF Railway Co. of Fort Worth. The transaction is expected to close by the end of the year.

Third-quarter results by segment are below.

Intermodal

Quarterly revenue was $1.55 billion, down from $1.8 billion. Operating income was $127.99 million, down from $216.99 million. The company reported an increase in loads from 515,178 to 521,221 but a drop in revenue per load to $2,984 from $3,565.

Dedicated Contract Services

Quarterly revenue was $892.3 million, down from $930.9 million. Operating income was $102.4 million, down from $107.2 million. Total loads dropped to 1.07 million from 1.16 million, and revenue per truck per week was $5,215, down from $5,329.

Integrated Capacity Solutions

Quarterly revenue was $298 million, down from $575.3 million. Operating income was a loss of $9.4 million, down from a profit of $13.4 million. The company said $168.5 million of the ICS quarterly revenue was generated through its Marketplace for J.B. Hunt 360°, down from $391.1 million.

Final Mile Services

Quarterly revenue was $225.9 million, down from $265.1 million. Operating income was $12.9 million, up from $9.8 million.

Truckload

Quarterly revenue was $196.3 million, down from $236.6 million. Operating income was $7.7 million, down from $14.9 million. The company reported an increase in load but said revenue per load was $1,832, down from $2,339.

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