
J.B. Hunt Transport Services Inc. of Lowell on Thursday reported that fourth-quarter profits rose slightly on falling revenue, concluding a challenging year for the trucking and logistics company.
Net income was $155.5 million, up 1.3 % from $153.5 million a year ago. Earnings per share was $1.53, up from $1.47.
The results fell short of Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.62 per share.
Revenue in the fourth quarter was $3.1 billion, down about 6% from $3.3 billion but above Street forecasts. Five analysts surveyed by Zacks expected $3.13 billion.
For the full year, revenue was $12.1 billion, down 5.5% from $12.8 billion a year ago.
Income for the full year was $570.9 million, down 21.6% from $728.3 million in 2023. Earnings per share came to $5.56, down from $6.97.
Shares of the company fell nearly 7% Friday morning to $173.42. Over the past year, shares were down about 9.5%.
J.B. Hunt CEO Shelley Simpson, in a conference call with industry analysts, called 2024 results a “continuation of the challenging freight environment.”
“Looking forward, the overall strategy and focus of our organization is on operational excellence and scaling into our investments,” Simpson said. “We are positioning the business for long-term growth that generates appropriate returns on capital that delivers long-term value for our shareholders.
“The decisions we make to strategically hold on to our people and capacity through the freight recession and make some bold investments, like acquiring the Intermodal assets from Walmart, were made through that lens and have only enhanced our future earnings potential.”
Results by segment are below.
Intermodal
Quarterly revenue was $1.59 billion, down from $1.62 billion. Operating income was $116.9 million, down from $129.9 million. For the year, revenue was $5.9 billion, down from $6.2 billion, and operating income was $429.9 million, down from $569.4 million.
Dedicated Contract Services
Quarterly revenue was $838.5 million, down from $883.9 million. Operating income was $90.3 million, up from $86.1 million. For the year, revenue was $3.4 billion, down from $3.5 billion, and operating income was $375.9 million, down from $404.8 million.
Integrated Capacity Solutions
Quarterly revenue was $307.6 million, down from $363.7 million. Operating income was a loss of $21.8 million, an improvement from a loss of $24.9 million. For the year, revenue was $1.1 billion, down from $1.4 billion, and operating income was a loss of $55.9 million, down from a loss of $44.1 million.
Final Mile Services
Quarterly revenue was $227.5 million, down from $243.2 million. Operating income was $13.2 million, up from $12.3 million. For the year, revenue was $910.4 million, down from $918.1 million, and operating income was $60.1 million, up from $46.7 million.
Truckload
Quarterly revenue was $181.9 million, down from $195.4 million. Operating income was $8.6 million, up from a loss of 39,000. For the year, revenue was $701.6 million, down from $789.4 million, and operating income was $21.5 million, up from $16.5 million.
“[W]hile our performance has held up relatively well in this difficult environment, we aren’t satisfied with the current results of our business, particularly around margins and returns on capital,” Simpson said. “A focus and a top priority for our leaders in the company is to get us on a path to repair and improve our financial performance.”