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J.B. Hunt (JBHT) Q1 Earnings, Revenues Lag Estimates, Down Y/Y
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J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2024 earnings of $1.22 per share missed the Zacks Consensus Estimate of $1.53 and declined 35.5% year over year.
JBHT’s total operating revenues of $2,944 million missed the Zacks Consensus Estimate of $3,117.1 million and fell 8.8% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 7% year over year. The downfall was owing to a 9% decrease in segment gross revenue per load in both Intermodal (JBI) and Truckload (JBT), 22% fewer loads in Integrated Capacity Solution (ICS), and a modest decline in average trucks and productivity in Dedicated Contract Services (DCS). Revenue declines in JBI, ICS, JBT and DCS were partially offset by Final Mile Services (FMS) revenue growth of 2%, primarily driven by new contracts implemented over the past year.
Operating income for the reported quarter fell 30% year over yearto $194.4 million. The downfall was owing to a combination of lower volumes and yield pressure in JBI, ICS and JBT, as well as increases in equipment, insurance and claims, and bad debt expense.
J.B. Hunt Transport Services, Inc. Price, Consensus and EPS Surprise
Intermodal division generated quarterly revenues of $1.40 billion, down 9% year over year. Revenue per load, excluding fuel surcharge revenue, was down 8% year over year. Transcontinental network loads increased 5% year over year, while eastern network loads decreased 7%.
Operating income fell 40% year over yearowing to lower yields.
Dedicated Contract Services segment revenues fell 2% from the year-ago period to $860 million, owing to a 1% decline in average trucks combined with a 1% decline in productivity (gross revenue per truck per week).
Operating income fell 9% year over yearowing to lower revenues, increases in insurance premiums, equipment and bad debt expense. These were partially offset by lower maintenance costs and the maturing of new businesses onboarded over the past trailing twelve months.
Integrated Capacity Solutions revenues decreased 26% year over year to $285 million. Segmental volumes decreased 22%. Revenue per load decreased 5% owing to lower contractual and transactional rates and changes in the customer freight mix.
JBHT reported an operating loss of $17.5 million in the reported quarter compared with $5.4 million in the year-ago reported quarter. The loss was owing to a $11.0 million decrease in gross profit, higher insurance costs, and integration and transition costs related to the purchase of the brokerage assets of BNSF Logistics. These were partially offset by lower personnel-related expenses and reduced technology costs.
Truckload revenues fell 13% to $178 million. Excluding fuel surcharge revenues, segmental revenues fell13% due to a 9% decline in revenue per load and a 5% decline in load volume.
At the end of the first quarter, total tractors and trailers were 1,933 and 13,306 compared with the year-ago quarter’s figures of 2,162 and 13,433, respectively.
Final Mile Services revenues grew 2% year over year to $229 million due to multiple new contracts implemented over the past year and efforts to improve the overall revenue quality of the business. These were partially offset by general weakness in demand across many of the end markets served.
Operating income increased 128% year over yearowing to higher revenue and lower personnel, maintenance, and technology costs. These were partially offset by higher facility rent expenses, insurance premiums, bad debt expenses, and loss on equipment sales as compared with the prior year period.
Liquidity & Buyback
J.B. Hunt exited the first quarter with cash and cash equivalents of $64.18 million compared with $53.34 million at the end of the prior quarter. Long-term debt was $1,366.51 million compared with $1,326.10 million at the fourth-quarter end.
In the first quarter of 2024, JBHT purchased almost 126,000 shares for $25 million. As of Mar 31, 2024, JBHT had approximately $366 million remaining under its share repurchase authorization.
Delta Air Lines (DAL - Free Report) reported first-quarter 2024 earnings (excluding 39 cents from non-recurring items) of 45 cents per share, which comfortably beat the Zacks Consensus Estimate of 36 cents. Earnings increased 80% on a year-over-year basis.
Revenues of $13.75 billion surpassed the Zacks Consensus Estimate of $12.84 billion and increased 7.75% on a year-over-year basis, driven by strong air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $12.56 billion, up 6% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported first-quarter 2024 loss per share (excluding 23 cents from non-recurring items) of 15 cents, which was narrower than the Zacks Consensus Estimate loss of 53 cents. In the year-ago reported quarter, UAL reported loss of 63 cents per share.
Operating revenues of $12,539 million beat the Zacks Consensus Estimate of $12,428.4 million. The top line increased 9.7% year over year due to upbeat air-travel demand. This was driven by a 10.1% rise in passenger revenues (accounting for 90.2% of the top line) to $11,313 million. Almost 39,325 passengers traveled on UAL flights in the first quarter, up 6.8% year over year.
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J.B. Hunt (JBHT) Q1 Earnings, Revenues Lag Estimates, Down Y/Y
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2024 earnings of $1.22 per share missed the Zacks Consensus Estimate of $1.53 and declined 35.5% year over year.
JBHT’s total operating revenues of $2,944 million missed the Zacks Consensus Estimate of $3,117.1 million and fell 8.8% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 7% year over year. The downfall was owing to a 9% decrease in segment gross revenue per load in both Intermodal (JBI) and Truckload (JBT), 22% fewer loads in Integrated Capacity Solution (ICS), and a modest decline in average trucks and productivity in Dedicated Contract Services (DCS). Revenue declines in JBI, ICS, JBT and DCS were partially offset by Final Mile Services (FMS) revenue growth of 2%, primarily driven by new contracts implemented over the past year.
Operating income for the reported quarter fell 30% year over yearto $194.4 million. The downfall was owing to a combination of lower volumes and yield pressure in JBI, ICS and JBT, as well as increases in equipment, insurance and claims, and bad debt expense.
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 $1.40 billion, down 9% year over year. Revenue per load, excluding fuel surcharge revenue, was down 8% year over year. Transcontinental network loads increased 5% year over year, while eastern network loads decreased 7%.
Operating income fell 40% year over yearowing to lower yields.
Dedicated Contract Services segment revenues fell 2% from the year-ago period to $860 million, owing to a 1% decline in average trucks combined with a 1% decline in productivity (gross revenue per truck per week).
Operating income fell 9% year over yearowing to lower revenues, increases in insurance premiums, equipment and bad debt expense. These were partially offset by lower maintenance costs and the maturing of new businesses onboarded over the past trailing twelve months.
Integrated Capacity Solutions revenues decreased 26% year over year to $285 million. Segmental volumes decreased 22%. Revenue per load decreased 5% owing to lower contractual and transactional rates and changes in the customer freight mix.
JBHT reported an operating loss of $17.5 million in the reported quarter compared with $5.4 million in the year-ago reported quarter. The loss was owing to a $11.0 million decrease in gross profit, higher insurance costs, and integration and transition costs related to the purchase of the brokerage assets of BNSF Logistics. These were partially offset by lower personnel-related expenses and reduced technology costs.
Truckload revenues fell 13% to $178 million. Excluding fuel surcharge revenues, segmental revenues fell13% due to a 9% decline in revenue per load and a 5% decline in load volume.
At the end of the first quarter, total tractors and trailers were 1,933 and 13,306 compared with the year-ago quarter’s figures of 2,162 and 13,433, respectively.
Final Mile Services revenues grew 2% year over year to $229 million due to multiple new contracts implemented over the past year and efforts to improve the overall revenue quality of the business. These were partially offset by general weakness in demand across many of the end markets served.
Operating income increased 128% year over yearowing to higher revenue and lower personnel, maintenance, and technology costs. These were partially offset by higher facility rent expenses, insurance premiums, bad debt expenses, and loss on equipment sales as compared with the prior year period.
Liquidity & Buyback
J.B. Hunt exited the first quarter with cash and cash equivalents of $64.18 million compared with $53.34 million at the end of the prior quarter. Long-term debt was $1,366.51 million compared with $1,326.10 million at the fourth-quarter end.
In the first quarter of 2024, JBHT purchased almost 126,000 shares for $25 million. As of Mar 31, 2024, JBHT had approximately $366 million remaining under its share repurchase authorization.
Currently, J.B. Hunt carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2024 earnings (excluding 39 cents from non-recurring items) of 45 cents per share, which comfortably beat the Zacks Consensus Estimate of 36 cents. Earnings increased 80% on a year-over-year basis.
Revenues of $13.75 billion surpassed the Zacks Consensus Estimate of $12.84 billion and increased 7.75% on a year-over-year basis, driven by strong air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $12.56 billion, up 6% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported first-quarter 2024 loss per share (excluding 23 cents from non-recurring items) of 15 cents, which was narrower than the Zacks Consensus Estimate loss of 53 cents. In the year-ago reported quarter, UAL reported loss of 63 cents per share.
Operating revenues of $12,539 million beat the Zacks Consensus Estimate of $12,428.4 million. The top line increased 9.7% year over year due to upbeat air-travel demand. This was driven by a 10.1% rise in passenger revenues (accounting for 90.2% of the top line) to $11,313 million. Almost 39,325 passengers traveled on UAL flights in the first quarter, up 6.8% year over year.