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J.B. Hunt (JBHT) Q4 Earnings Lag Estimates, Down Y/Y
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J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2022 earnings of $1.92 per share missed the Zacks Consensus Estimate of $2.45 and declined 16% year over year.
Total operating revenues of $3,649.62 million also lagged the Zacks Consensus Estimate of $3,796.8 million. The top line jumped 4.4% year over year. Total operating revenues, excluding fuel surcharges, fell 2.9% year over year.
The quarterly operating income (on a reported basis) fell 12.6% to $281.95 million, owing to an unfavorable impact of $64 million pre-tax increase in casualty claim expense.
Operating expenses escalated 6.1% to $3.37 billion.
J.B. Hunt Transport Services, Inc. Price, Consensus and EPS Surprise
Intermodal division generated quarterly revenues of $1.75 billion, up 11% year over year, owing to a 12% increase in revenue per load resulting from changes in the mix of freight, customer rates and fuel surcharge revenue. Volumes decreased 1% year over year. While Eastern network loads increased 8%, transcontinental loads fell 7%.
Operating income fell 8% to $179.5 million owing to lower volume, higher investments to attract and retain professional drivers, office personnel and maintenance technicians and higher insurance costs.
Dedicated Contract Services segment revenues rose 24% from the year-ago period to $880 million, owing to fleet productivity improvement and an increase in average revenue-producing trucks. The company’s fleet, at the end of the quarter, had 1,210 more revenue-producing trucks (on a net basis) versus a year ago. Operating income increased 4% to $75.8 million.
Integrated Capacity Solutions revenues decreased 33% year over year to $496 million. While segmental volumes decreased 27% and truckload volumes declined 21%. Revenue per load fell 9% due to changes in the customer freight mix and lower contractual and transactional rates in the company’s truckload business. JBHT reported an operating loss of $2.9 million against the operating income of $21.2 million in the year-ago quarter.
Truckload revenues soared 6% to $276 million. Excluding fuel surcharge revenues, segmental revenues fell 2% year over year, owing to an 8% decline in revenue per load, partially offset by a 6% increase in load volume. At the end of the fourth quarter, total tractors and trailers were 2,718 and 14,718, respectively, compared with the year-ago quarter’s figures of 2,235 and 11,172. The Truckload operating income declined 35% year over year to $16.9 million.
Final Mile Services revenues ascended 15% year over year to $255 million due to the addition of multiple customer contracts over the last year and benefits from the acquisition of Zenith Freight Lines. The segment’s operating income was $12.6 million in the reported quarter, up 70% year over year.
Liquidity & Buyback
J.B. Hunt exited the fourth quarter with cash and cash equivalents of $51.93 million compared with $84.33 million at the end of September 2022. Long-term debt was $1,261.73 million compared with $1,243.81 million at September-end.
Net capital expenditures for the fourth quarter were $413.87 million compared with $365.94 million in the year-ago period.
During the reported quarter, J.B. Hunt did not repurchase any shares. The trucking company had approximately $551 million remaining under its share repurchase authorization at the end of the fourth quarter.
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-coronavirus) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
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J.B. Hunt (JBHT) Q4 Earnings Lag Estimates, Down Y/Y
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2022 earnings of $1.92 per share missed the Zacks Consensus Estimate of $2.45 and declined 16% year over year.
Total operating revenues of $3,649.62 million also lagged the Zacks Consensus Estimate of $3,796.8 million. The top line jumped 4.4% year over year. Total operating revenues, excluding fuel surcharges, fell 2.9% year over year.
The quarterly operating income (on a reported basis) fell 12.6% to $281.95 million, owing to an unfavorable impact of $64 million pre-tax increase in casualty claim expense.
Operating expenses escalated 6.1% to $3.37 billion.
J.B. Hunt Transport Services, Inc. Price, Consensus and EPS Surprise
J.B. Hunt Transport Services, Inc. price-consensus-eps-surprise-chart | J.B. Hunt Transport Services, Inc. Quote
Segmental Highlights
Intermodal division generated quarterly revenues of $1.75 billion, up 11% year over year, owing to a 12% increase in revenue per load resulting from changes in the mix of freight, customer rates and fuel surcharge revenue. Volumes decreased 1% year over year. While Eastern network loads increased 8%, transcontinental loads fell 7%.
Operating income fell 8% to $179.5 million owing to lower volume, higher investments to attract and retain professional drivers, office personnel and maintenance technicians and higher insurance costs.
Dedicated Contract Services segment revenues rose 24% from the year-ago period to $880 million, owing to fleet productivity improvement and an increase in average revenue-producing trucks. The company’s fleet, at the end of the quarter, had 1,210 more revenue-producing trucks (on a net basis) versus a year ago. Operating income increased 4% to $75.8 million.
Integrated Capacity Solutions revenues decreased 33% year over year to $496 million. While segmental volumes decreased 27% and truckload volumes declined 21%. Revenue per load fell 9% due to changes in the customer freight mix and lower contractual and transactional rates in the company’s truckload business. JBHT reported an operating loss of $2.9 million against the operating income of $21.2 million in the year-ago quarter.
Truckload revenues soared 6% to $276 million. Excluding fuel surcharge revenues, segmental revenues fell 2% year over year, owing to an 8% decline in revenue per load, partially offset by a 6% increase in load volume. At the end of the fourth quarter, total tractors and trailers were 2,718 and 14,718, respectively, compared with the year-ago quarter’s figures of 2,235 and 11,172. The Truckload operating income declined 35% year over year to $16.9 million.
Final Mile Services revenues ascended 15% year over year to $255 million due to the addition of multiple customer contracts over the last year and benefits from the acquisition of Zenith Freight Lines. The segment’s operating income was $12.6 million in the reported quarter, up 70% year over year.
Liquidity & Buyback
J.B. Hunt exited the fourth quarter with cash and cash equivalents of $51.93 million compared with $84.33 million at the end of September 2022. Long-term debt was $1,261.73 million compared with $1,243.81 million at September-end.
Net capital expenditures for the fourth quarter were $413.87 million compared with $365.94 million in the year-ago period.
During the reported quarter, J.B. Hunt did not repurchase any shares. The trucking company had approximately $551 million remaining under its share repurchase authorization at the end of the fourth quarter.
Currently, J.B. Hunt carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-coronavirus) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.