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J.B. Hunt Income Drops 26% in Q2

2 min read

J.B. Hunt Transport Services Inc. (Nasdaq: JBHT) of Lowell on Tuesday reported another sharp drop in revenue and income as the company continues to weather a so-called freight recession.

The trucking and logistics company reported second-quarter income of $189.6 million, down 25.8% from $255.6 million in the same period a year ago. Earnings per share came to $1.81, down from $2.42.

The results missed Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.97 per share.

Revenue in the period totaled $3.13 billion, down 18.5% from $3.84 billion a year ago and below Wall Street expectations. Six analysts surveyed by Zacks expected $3.35 billion.

It’s the third consecutive quarter the company has reported a year-over-year drop in profits and the second consecutive quarter it has seen a drop in revenue.

J.B. Hunt said the revenue declines were mostly a result of a drop in revenue per load in its Integrated Capacity Solutions (by 24%), Truckload (21%) and Intermodal (13%) divisions.

Income was affected by lower rates and reduced capacity, part of what J.B. Hunt President Shelley Simpson has characterized it as a “freight recession.” The industry has seen demand fall from a historic high during the pandemic, while expenses have risen due to inflation.

The company reported its second-quarter results after market close Tuesday. Shares of the company were up 4% in after-hours trading. Year to date, shares were up 9%.

Second-quarter results by segment are below.

Intermodal

Quarterly revenue was $1.5 billion, down from $1.8 billion. Operating income was $142.9 million, down from $202.5 million. The company reported fewer loads (down from 539,024 to 501,681) and a drop in revenue per load, from $3,400 to $2,968.

Dedicated Contract Services

Quarterly revenue was $887.6 million, down from $903.9 million. Operating income was $113.6 million, up from $94.1 million. Total loads were slightly more than 1.1 million, down from 1.15 million, while revenue per truck per week was $5,182, down from $5,380.

Integrated Capacity Solutions

Quarterly revenue was $343.7 million, down from $605.6 million. Operating income was a loss of 4.4 million, down from $23.2 million. Overall loads dropped from 262,213 to 194,635 and revenue per load also dropped from $2,310 to $1,766.

The company said $225 million of the ICS quarterly revenue was generated through its Marketplace for J.B. Hunt 360°, down from $392.1 million.

Final Mile Services

Quarterly income was $223.9 million, down from $274.99 million. Operating income was $14.8 million, down from $13.2 million.

Truckload

Quarterly income was $191.8 million, down from $227.9 million. Operating income was $3.8 million, down from $20 million. Total loads increased to 101,402 from 95,245 but revenue per load dropped from $2,393 to $1,892.

The Associated Press contributed information to this report.

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