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J. B. Hunt's (JBHT) Q2 Earnings Surpass Estimates, Rise Y/Y
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J.B. Hunt Transport Services, Inc. (JBHT - Free Report) performed impressively in the second quarter of 2018, reporting better-than-expected revenues and earnings per share. Both the metrics also improved on a year-over-year basis.
This transportation company’s earnings of $1.37 per share outpaced the Zacks Consensus Estimate by 9 cents. Moreover, the bottom line improved 55.7% on a year-over-year basis despite higher operating expenses. Lower effective tax rate aided the bottom line. Also, revenues increased 23.9% year over year to $2,139 million. The top-line figure cruised ahead the Zacks Consensus Estimate of $2,045.1 million.
Operating income also increased 31% to $214.8 million (on a reported basis) backed by volume growth among other factors.
In the quarter under review, this Zacks Rank #3 (Hold) company repurchased 420,000 shares for approximately $50 million. As on Jun 30, 2018, the company had around $471 million remaining under its share buyback program. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
J.B. Hunt Transport Services, Inc. Price, Consensus and EPS Surprise
The Intermodal division reported quarterly revenues of $1.16 billion, up 16% year over year. Load volumes in the segment were up 4%. Revenue per load, excluding fuel surcharge revenues, increased 8% on a year-over-year basis. Operating income was up 22% year over year driven by volume growth and customer rate increases.
Dedicated Contract Services revenues surged 29% year over year to $530 million. The company added new trucks to the fleet in the second quarter while customer retention rates remained above 98%. Operating income increased 20% year over year to $58.5 million, primarily due to increased productivity and more trucks under contract.
Integrated Capacity Solutions revenues climbed 56% year over year to $347 million. Revenue per load improved 13% on a year-over-year basis on the back of higher contractual and spot rates in the quarter under review. Spot volumes increased 63% in the quarter under review. The segment reported an operating income of $14.9 million in the quarter in contrast to operating loss a year ago. The improved performance can be attributed to an increased gross margin.
Truck revenues increased 7% to $101 million primarily due to customer rate increases and freight mix changes. At the end of the quarter, J.B. Hunt operated 1,976 tractors, down 4.6% year over year. Trailers decreased 8.9% to 6,928 in the quarter under review. Operating income rose 35% to $7.5 million, courtesy of favorable factors like higher revenue per load and lower equipment ownership costs.
Effective tax rate declined to 26% in the reported quarter from 37.4% a year ago. At the end of the second quarter, cash and cash equivalents were $15.2 million compared with approximately $14.61 million at the end of 2017. Long-term debt was $755.56 million compared with $1.09 billion at the end of 2017. Net capital expenditures in the first half of the year more than doubled to $354 million.
Upcoming Releases
Investors interested in the broader Zacks Transportation sector are keenly awaiting second-quarter earnings reports from key players like Union Pacific Corp. (UNP - Free Report) , United Continental Holdings, Inc. (UAL - Free Report) and SkyWest, Inc. (SKYW - Free Report) in the coming days. While United Continental is scheduled to report on Jul 17, Union Pacific and SkyWest are scheduled to follow suit on Jul 19 and Jul 26, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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J. B. Hunt's (JBHT) Q2 Earnings Surpass Estimates, Rise Y/Y
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) performed impressively in the second quarter of 2018, reporting better-than-expected revenues and earnings per share. Both the metrics also improved on a year-over-year basis.
This transportation company’s earnings of $1.37 per share outpaced the Zacks Consensus Estimate by 9 cents. Moreover, the bottom line improved 55.7% on a year-over-year basis despite higher operating expenses. Lower effective tax rate aided the bottom line. Also, revenues increased 23.9% year over year to $2,139 million. The top-line figure cruised ahead the Zacks Consensus Estimate of $2,045.1 million.
Operating income also increased 31% to $214.8 million (on a reported basis) backed by volume growth among other factors.
In the quarter under review, this Zacks Rank #3 (Hold) company repurchased 420,000 shares for approximately $50 million. As on Jun 30, 2018, the company had around $471 million remaining under its share buyback program. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Segmental Performance
The Intermodal division reported quarterly revenues of $1.16 billion, up 16% year over year. Load volumes in the segment were up 4%. Revenue per load, excluding fuel surcharge revenues, increased 8% on a year-over-year basis. Operating income was up 22% year over year driven by volume growth and customer rate increases.
Dedicated Contract Services revenues surged 29% year over year to $530 million. The company added new trucks to the fleet in the second quarter while customer retention rates remained above 98%. Operating income increased 20% year over year to $58.5 million, primarily due to increased productivity and more trucks under contract.
Integrated Capacity Solutions revenues climbed 56% year over year to $347 million. Revenue per load improved 13% on a year-over-year basis on the back of higher contractual and spot rates in the quarter under review. Spot volumes increased 63% in the quarter under review. The segment reported an operating income of $14.9 million in the quarter in contrast to operating loss a year ago. The improved performance can be attributed to an increased gross margin.
Truck revenues increased 7% to $101 million primarily due to customer rate increases and freight mix changes. At the end of the quarter, J.B. Hunt operated 1,976 tractors, down 4.6% year over year. Trailers decreased 8.9% to 6,928 in the quarter under review. Operating income rose 35% to $7.5 million, courtesy of favorable factors like higher revenue per load and lower equipment ownership costs.
Effective tax rate declined to 26% in the reported quarter from 37.4% a year ago. At the end of the second quarter, cash and cash equivalents were $15.2 million compared with approximately $14.61 million at the end of 2017. Long-term debt was $755.56 million compared with $1.09 billion at the end of 2017. Net capital expenditures in the first half of the year more than doubled to $354 million.
Upcoming Releases
Investors interested in the broader Zacks Transportation sector are keenly awaiting second-quarter earnings reports from key players like Union Pacific Corp. (UNP - Free Report) , United Continental Holdings, Inc. (UAL - Free Report) and SkyWest, Inc. (SKYW - Free Report) in the coming days. While United Continental is scheduled to report on Jul 17, Union Pacific and SkyWest are scheduled to follow suit on Jul 19 and Jul 26, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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