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J.B. Hunt (JBHT) Shares Up on Q3 Earnings & Revenues Beat
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J.B. Hunt Transport Services, Inc. (JBHT - Free Report) performed impressively in the third quarter of 2018, delivering better-than-expected revenues as well as earnings per share. Both metrics also improved year over year.
The earnings and revenues beat pleased investors. As a result, shares of the company inched up 1.5% in after-hours trading on Oct 15.
This transportation company’s earnings (excluding 28 cents from non-recurring items) of $1.47 per share outpaced the Zacks Consensus Estimate of $1.40, also comparing favorably with the year-ago figure of 91 cents. Lower effective tax rate aided the bottom line. Moreover, revenues increased 20% year over year to $2,209.76 million, surpassing the Zacks Consensus Estimate of $2,203.21 million.
Additionally, operating income rose 6% to $174.7 million (on a reported basis), backed by customer rate increases.
In the quarter under review, this Zacks Rank #3 (Hold) company repurchased 422,000 shares for approximately $50 million. As of Sep 30, 2018, the company had around $421 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 $1.22 billion, up 16% year over year. Load volumes in the segment nudged up 1%. Revenue per load excluding fuel surcharge revenues climbed 12% on a year-over-year basis. Operating income ascended 10% year over year, driven by higher customer rates.
Dedicated Contract Services revenues increased 24% year over year to $543 million. The company added new trucks to the fleet during the second quarter while customer retention rates remained above 98%. Operating income dropped 18% year over year to $35 million due to increased driver wages, salaries and other benefits besides other costs.
Integrated Capacity Solutions revenues jumped 28% year over year to $346 million. Revenue per load declined 9% year over year due to an increased mix of contractual less-than-truckload volume compared with the year-ago quarter’s level. Meanwhile, volumes soared 41% year over year. The segment delivered an operating income of $10.2 million, up 40% year over year owing to higher gross profit margin.
Truck revenues increased 14% to $106 million. At the end of the third quarter, J.B. Hunt operated 1,972 tractors compared with 2,040 a year ago while trailers decreased to 6,818 in the period compared with 7,538 a year ago. Operating income soared 61% to $9.2 million, courtesy of favorable factors like higher rates per loaded mile and lower equipment ownership costs.
Effective tax rate fell to 20.4% in the quarter under discussion from 35.9% a year ago. The company anticipates effective tax rate to be approximately 24% this year. At the end of the third quarter, cash and cash equivalents were $7.59 million compared with approximately $14.61 million at the end of 2017. Long-term debt was $820.86 million compared with $1.09 billion at 2017-end. Net capital expenditures during the first nine months of 2018 totaled $585 million compared with $315 million in the same period last year.
Upcoming Releases
Investors interested in the broader Zacks Transportation sector are keenly awaiting third-quarter results of Union Pacific Corp. (UNP - Free Report) , Trinity Industries, Inc. (TRN - Free Report) and SkyWest, Inc. (SKYW - Free Report) in the coming days. While Trinity is scheduled to report third-quarter earnings on Oct 24, Union Pacific and SkyWest will release the same on Oct 25 and Oct 30, respectively.
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J.B. Hunt (JBHT) Shares Up on Q3 Earnings & Revenues Beat
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) performed impressively in the third quarter of 2018, delivering better-than-expected revenues as well as earnings per share. Both metrics also improved year over year.
The earnings and revenues beat pleased investors. As a result, shares of the company inched up 1.5% in after-hours trading on Oct 15.
This transportation company’s earnings (excluding 28 cents from non-recurring items) of $1.47 per share outpaced the Zacks Consensus Estimate of $1.40, also comparing favorably with the year-ago figure of 91 cents. Lower effective tax rate aided the bottom line. Moreover, revenues increased 20% year over year to $2,209.76 million, surpassing the Zacks Consensus Estimate of $2,203.21 million.
Additionally, operating income rose 6% to $174.7 million (on a reported basis), backed by customer rate increases.
In the quarter under review, this Zacks Rank #3 (Hold) company repurchased 422,000 shares for approximately $50 million. As of Sep 30, 2018, the company had around $421 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 $1.22 billion, up 16% year over year. Load volumes in the segment nudged up 1%. Revenue per load excluding fuel surcharge revenues climbed 12% on a year-over-year basis. Operating income ascended 10% year over year, driven by higher customer rates.
Dedicated Contract Services revenues increased 24% year over year to $543 million. The company added new trucks to the fleet during the second quarter while customer retention rates remained above 98%. Operating income dropped 18% year over year to $35 million due to increased driver wages, salaries and other benefits besides other costs.
Integrated Capacity Solutions revenues jumped 28% year over year to $346 million. Revenue per load declined 9% year over year due to an increased mix of contractual less-than-truckload volume compared with the year-ago quarter’s level. Meanwhile, volumes soared 41% year over year. The segment delivered an operating income of $10.2 million, up 40% year over year owing to higher gross profit margin.
Truck revenues increased 14% to $106 million. At the end of the third quarter, J.B. Hunt operated 1,972 tractors compared with 2,040 a year ago while trailers decreased to 6,818 in the period compared with 7,538 a year ago. Operating income soared 61% to $9.2 million, courtesy of favorable factors like higher rates per loaded mile and lower equipment ownership costs.
Effective tax rate fell to 20.4% in the quarter under discussion from 35.9% a year ago. The company anticipates effective tax rate to be approximately 24% this year. At the end of the third quarter, cash and cash equivalents were $7.59 million compared with approximately $14.61 million at the end of 2017. Long-term debt was $820.86 million compared with $1.09 billion at 2017-end. Net capital expenditures during the first nine months of 2018 totaled $585 million compared with $315 million in the same period last year.
Upcoming Releases
Investors interested in the broader Zacks Transportation sector are keenly awaiting third-quarter results of Union Pacific Corp. (UNP - Free Report) , Trinity Industries, Inc. (TRN - Free Report) and SkyWest, Inc. (SKYW - Free Report) in the coming days. While Trinity is scheduled to report third-quarter earnings on Oct 24, Union Pacific and SkyWest will release the same on Oct 25 and Oct 30, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>