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

2 min read

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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