J. B. Hunt (JBHT) Q4 Earnings And Revenues Beat, Rise Y/Y

J.B. Hunt Transport Services Inc. (NASDAQ:JBHT) performed impressively in the fourth quarter of 2017. Evidently, it posted better-than-expected earnings per share and revenues in the quarter.

This transportation company’s earnings (excluding $2.44 from non-recurring items) of $1.04 per share edged past the Zacks Consensus Estimate of $1.03. The bottom line also improved 7.2% on a year-over-year basis despite higher operating expenses. In fact, the 16% year-over-year increase in revenues aided results. Revenues also surpassed the Zacks Consensus Estimate of $1.93 billion.

Operating income decreased 25% to $146 million (on a reported basis). However, excluding fuel surcharges, the measure increased 13% year over year.

During the quarter under review, this Zacks Rank #3 (Hold) company did not repurchase shares. The company stated that $521 million were remaining under its share buyback program as of Dec 31, 2017. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Segmental Performance

The Intermodal division reported quarterly revenues of $1.1 billion, up 10% year over year. Overall volumes in the segment climbed 5%. Revenue per load, excluding fuel surcharge revenues, increased 2% on a year-over-year basis. Operating income declined 25% year over year due to higher costs.

Dedicated Contract Services revenues increased 20% year over year to $477 million. The company added new trucks to the fleet in the fourth quarter while customer retention rates remained above 98%. Operating income decreased 39% year over year to $34.9 million, primarily due to increased costs like driver wages.

Integrated Capacity Solutions revenues surged 40% year over year to $323 million. Revenue per load improved 19% on a year-over-year basis. Load volumes increased 17% as well. Operating income surged 86% mainly owing to increased spot market activity.

Truck revenues increased 1% to $97 million. At the end of the quarter, J.B. Hunt operated 2,032 tractors decreased 4.5% year over year. Trailers decreased 6.8% to 7,120 in the quarter under review. Operating income also declined 5% to $6.4 million due to favorable factors like higher revenue per load.

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 fourth quarter, cash and cash equivalents were $14.61 million compared with approximately $6.38 million at the end of 2016.

Long-term debt was $1.09 billion compared with $986.28 million at the end of the previous year.

Upcoming Releases

Investors interested in the Zacks Transportation sector are keenly awaiting for fourth-quarter earnings reports from key players like Kansas City Southern (NYSE:KSU) , Canadian National Railway Company (NYSE:CNI) and Norfolk Southern Corp. (NYSE:NSC) in the coming days. While Kansas City Southern is scheduled to report on Jan 19, Canadian National and Norfolk Southern are scheduled to report on Jan 23 and Jan 24, respectively.

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