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J.B. Hunt (JBHT) Q2 Earnings & Revenues Lag Estimates, Down Y/Y
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J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
Total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload, and a 4% decline in productivity in Dedicated Capacity Solutions, on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Operating income for the second quarter decreased 23% year over year to $270.7 million, owing to lower revenue across all the business segments, lower volumes and customer rates.
J.B. Hunt Transport Services, Inc. Price, Consensus and EPS Surprise
Net interest expense for the second quarter increased 14% year over year due to higher effective interest rates.
Operating expenses fell 17.9% to $2,861.91 million.
Segmental Highlights
Intermodal division generated quarterly revenues of $1.49 billion, down 19% year over year, owing to a 7% decrease in volume and a 13% decrease in gross revenue per load, resulting from changes in the mix of freight, customer rates and fuel surcharge revenues. Revenue per load, excluding fuel surcharge revenue, fell 7% year over year. Eastern network loads declined 6%, while transcontinental loads fell 8%.
Operating income fell 29% year over year in the second quarter due to lower customer rates and volume and the resulting impact on absorbing network and equipment costs.
Dedicated Contract Services segment revenues fell 2% from the year-ago period to $888 million due to a 4% decrease in productivity (revenue per truck per week) versus the prior period.
Operating income grew 21% year over year due to the maturing of new business onboarded over the trailing 12 months. This benefit was partially offset by higher professional driver and non-driver wages and benefits and equipment-related and maintenance expenses.
Integrated Capacity Solutions revenues decreased 43% year over year to $344 million. Segmental volumes decreased 26%. Revenue per load fell 24% owing to lower contractual and transactional rates and changes in customer freight mix.
JBHT reported an operating loss of $4.4 million against the operating income of $23.2 million in the year-ago quarter. The loss wasdue to lower gross profit, partially offset by lower personnel and insurance-related expenses and reduced technology costs.
Truckload revenues fell 16% to $192 million. Excluding fuel surcharge revenues, segmental revenues fell 15%, primarily owing to a 20% decline in revenue per load, partially offset by a 6% increase in load volume. At the second-quarter end, total tractors and trailers were 2,068 and 15,358 compared with the year-ago quarter’s figures of 2,015 and 12,770, respectively.
Operating income fell 81% year over year to $3.8 million due to a decline in revenues.
Final Mile Services revenues fell 19% year over year to $224 million due to general weakness in demand across many of the industry verticals served.
Operating income increased 12% year over year on the back of internal efforts to improve revenue quality and manage costs.
Liquidity & Buyback
J.B. Hunt exited the second quarter with cash and cash equivalents of $295.92 million compared with $52.60 million at the first quarter of 2023-end. Long-term debt was $1,195.30 million compared with $991.71million at the end of first-quarter 2023.
Net capital expenditures for the second quarter were $473.94 million compared with $308.96 million in the year-ago period.
In the second quarter of 2023, JBHT purchased almost 315,000 shares for $53 million. As of Jun 30, 2023, JBHT had approximately $467 million remaining under its share repurchase authorization.
Currently, J.B. Hunt carries a Zacks Rank #3 (Hold).
Upcoming Releases
Here are a few stocks from the broader Zacks Transportation sector slated to release their second-quarter 2023earnings.
Copa Holdings has an expected earnings growth rate of more than 100% for second-quarter 2023. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised upward by 94% in the past 90 days.
American Airlines (AAL - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
American Airlines has an expected earnings growth rate of more than 100% for second-quarter 2023. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has been revised upward by 50.9% in the past 90 days.
Alaska Air (ALK - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #3. ALK will release results on Jul 25.
Alaska Air has an expected earnings growth rate of 21% for second-quarter 2023.
The Zacks Consensus Estimate for ALK’s second-quarter 2023 earnings has been revised upward by 36.1% in the past 90 days.
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J.B. Hunt (JBHT) Q2 Earnings & Revenues Lag Estimates, Down Y/Y
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
Total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload, and a 4% decline in productivity in Dedicated Capacity Solutions, on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Operating income for the second quarter decreased 23% year over year to $270.7 million, owing to lower revenue across all the business segments, lower volumes and customer rates.
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
Net interest expense for the second quarter increased 14% year over year due to higher effective interest rates.
Operating expenses fell 17.9% to $2,861.91 million.
Segmental Highlights
Intermodal division generated quarterly revenues of $1.49 billion, down 19% year over year, owing to a 7% decrease in volume and a 13% decrease in gross revenue per load, resulting from changes in the mix of freight, customer rates and fuel surcharge revenues. Revenue per load, excluding fuel surcharge revenue, fell 7% year over year. Eastern network loads declined 6%, while transcontinental loads fell 8%.
Operating income fell 29% year over year in the second quarter due to lower customer rates and volume and the resulting impact on absorbing network and equipment costs.
Dedicated Contract Services segment revenues fell 2% from the year-ago period to $888 million due to a 4% decrease in productivity (revenue per truck per week) versus the prior period.
Operating income grew 21% year over year due to the maturing of new business onboarded over the trailing 12 months. This benefit was partially offset by higher professional driver and non-driver wages and benefits and equipment-related and maintenance expenses.
Integrated Capacity Solutions revenues decreased 43% year over year to $344 million. Segmental volumes decreased 26%. Revenue per load fell 24% owing to lower contractual and transactional rates and changes in customer freight mix.
JBHT reported an operating loss of $4.4 million against the operating income of $23.2 million in the year-ago quarter. The loss wasdue to lower gross profit, partially offset by lower personnel and insurance-related expenses and reduced technology costs.
Truckload revenues fell 16% to $192 million. Excluding fuel surcharge revenues, segmental revenues fell 15%, primarily owing to a 20% decline in revenue per load, partially offset by a 6% increase in load volume. At the second-quarter end, total tractors and trailers were 2,068 and 15,358 compared with the year-ago quarter’s figures of 2,015 and 12,770, respectively.
Operating income fell 81% year over year to $3.8 million due to a decline in revenues.
Final Mile Services revenues fell 19% year over year to $224 million due to general weakness in demand across many of the industry verticals served.
Operating income increased 12% year over year on the back of internal efforts to improve revenue quality and manage costs.
Liquidity & Buyback
J.B. Hunt exited the second quarter with cash and cash equivalents of $295.92 million compared with $52.60 million at the first quarter of 2023-end. Long-term debt was $1,195.30 million compared with $991.71million at the end of first-quarter 2023.
Net capital expenditures for the second quarter were $473.94 million compared with $308.96 million in the year-ago period.
In the second quarter of 2023, JBHT purchased almost 315,000 shares for $53 million. As of Jun 30, 2023, JBHT had approximately $467 million remaining under its share repurchase authorization.
Currently, J.B. Hunt carries a Zacks Rank #3 (Hold).
Upcoming Releases
Here are a few stocks from the broader Zacks Transportation sector slated to release their second-quarter 2023earnings.
Copa Holdings, S.A. (CPA - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #2 (Buy). CPA will release results on Aug 9. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Copa Holdings has an expected earnings growth rate of more than 100% for second-quarter 2023. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised upward by 94% in the past 90 days.
American Airlines (AAL - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
American Airlines has an expected earnings growth rate of more than 100% for second-quarter 2023. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has been revised upward by 50.9% in the past 90 days.
Alaska Air (ALK - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #3. ALK will release results on Jul 25.
Alaska Air has an expected earnings growth rate of 21% for second-quarter 2023.
The Zacks Consensus Estimate for ALK’s second-quarter 2023 earnings has been revised upward by 36.1% in the past 90 days.