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J.B. Hunt Transport Services Inc. (JBHT - Free Report) reported mixed first-quarter 2017 financial results. The company’s bottom line beat the Zacks Consensus Estimate, whereas the top line fell short of expectations.
This transportation company’s earnings of 92 cents per share beat the Zacks Consensus Estimate of 87 cents. The company’s earnings in the year-ago quarter was 88 cents.
Total operating revenues increased 6.5% year over year to $1,629 million, narrowly missing the Zacks Consensus Estimate of $1,631.4 million. During the quarter, the company repurchased approximately 1.33 million shares for $130 million. Operating income in the first quarter decreased 11.3% to $149 million. Lower customer rates hurt results.
The effective income tax rate in the first quarter of 2017 declined to 28% from 38% a year-ago due to a one-time after tax benefit of $13.6 million (12 cents per share). The company expects a tax rate of 35% for full-year 2017.
Segmental Performance
The Intermodal division reported quarterly revenues of $937 million, up 5% year over year. Load volumes in the segment climbed 2%. Revenue per load increased 3%. Operating income decreased 8% year over year to $95 million.
Dedicated Contract Services revenues grew 10% year over year to $392 million. The company added new trucks to the fleet and customer retention rates remained above 98%. Operating income was flat at $45 million, as the positive impact of higher revenues and improved asset utilization were offset by higher costs.
Integrated Capacity Solutions revenues surged 14% year over year to $209 million on the back of 36% increase in load volumes. On a year-over-year basis, revenue per load plunged 16%. Operating income declined 59% to $4.5 million due to lower gross profit margin and higher costs.
Truck (JBT) revenues decreased 2% to $94 million primarily due to lower revenue per load.At the end of the first quarter, the company operated 2,144 tractors, down from the figure at the end of 2016. Operating income decreased 46% to $4.9 million due to lower customer rates per miles.
J.B. Hunt Transport Services, Inc. Price, Consensus and EPS Surprise
At the end of the first quarter of 2017, cash and cash equivalents were $12.3 million compared with approximately $6.4 million at the end of 2016. Long-term debt was $950.6 million compared with $986.3 million at the end of 2016.
Upcoming Releases
Investors interested in the broader transportation sector are keenly awaiting for first-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Norfolk Southern Corp. (NSC - Free Report) and Kansas City Southern in the coming days. Kansas City Southern is scheduled to report on Apr 21, while Canadian National and Norfolk Southern will report on Apr 24 and Apr 26, respectively.
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J.B. Hunt (JBHT) Beats Q1 Earnings, Misses Sales Estimates
J.B. Hunt Transport Services Inc. (JBHT - Free Report) reported mixed first-quarter 2017 financial results. The company’s bottom line beat the Zacks Consensus Estimate, whereas the top line fell short of expectations.
This transportation company’s earnings of 92 cents per share beat the Zacks Consensus Estimate of 87 cents. The company’s earnings in the year-ago quarter was 88 cents.
Total operating revenues increased 6.5% year over year to $1,629 million, narrowly missing the Zacks Consensus Estimate of $1,631.4 million. During the quarter, the company repurchased approximately 1.33 million shares for $130 million. Operating income in the first quarter decreased 11.3% to $149 million. Lower customer rates hurt results.
The effective income tax rate in the first quarter of 2017 declined to 28% from 38% a year-ago due to a one-time after tax benefit of $13.6 million (12 cents per share). The company expects a tax rate of 35% for full-year 2017.
Segmental Performance
The Intermodal division reported quarterly revenues of $937 million, up 5% year over year. Load volumes in the segment climbed 2%. Revenue per load increased 3%. Operating income decreased 8% year over year to $95 million.
Dedicated Contract Services revenues grew 10% year over year to $392 million. The company added new trucks to the fleet and customer retention rates remained above 98%. Operating income was flat at $45 million, as the positive impact of higher revenues and improved asset utilization were offset by higher costs.
Integrated Capacity Solutions revenues surged 14% year over year to $209 million on the back of 36% increase in load volumes. On a year-over-year basis, revenue per load plunged 16%. Operating income declined 59% to $4.5 million due to lower gross profit margin and higher costs.
Truck (JBT) revenues decreased 2% to $94 million primarily due to lower revenue per load.At the end of the first quarter, the company operated 2,144 tractors, down from the figure at the end of 2016. Operating income decreased 46% to $4.9 million due to lower customer rates per miles.
J.B. Hunt Transport Services, Inc. Price, Consensus and EPS Surprise
J.B. Hunt Transport Services, Inc. Price, Consensus and EPS Surprise | J.B. Hunt Transport Services, Inc. Quote
Liquidity
At the end of the first quarter of 2017, cash and cash equivalents were $12.3 million compared with approximately $6.4 million at the end of 2016. Long-term debt was $950.6 million compared with $986.3 million at the end of 2016.
Upcoming Releases
Investors interested in the broader transportation sector are keenly awaiting for first-quarter earnings reports from key players like Canadian National Railway Company (CNI - Free Report) , Norfolk Southern Corp. (NSC - Free Report) and Kansas City Southern in the coming days. Kansas City Southern is scheduled to report on Apr 21, while Canadian National and Norfolk Southern will report on Apr 24 and Apr 26, respectively.
Zacks Rank
J.B. Hunt currently carries a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>