LOWELL, Ark. - J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) has reported a decline in its second-quarter 2024 earnings and revenue, missing analyst expectations.
The company's earnings per share (EPS) came in at $1.32, falling short of the consensus estimate of $1.50. Revenue also lagged behind projections, with the company reporting $2.93 billion against the anticipated $3.03 billion. Following the earnings release, J.B. Hunt's stock price dropped by 2.8%.
The transportation giant saw a 7% decrease in total operating revenue compared to the second quarter of the previous year, which stood at $3.13 billion. This year-over-year (YoY) decline was primarily attributed to a 5% drop in gross revenue per load in the Intermodal segment and significant volume reductions across various services, including a 25% decrease in Integrated Capacity Solutions, and 9% in both Truckload and Dedicated Contract Services.
Operating income for the quarter experienced a 24% YoY reduction, from $270.7 million in the second quarter of 2023 to $205.7 million in the current quarter. This was mainly due to lower revenue and increased expenses in insurance and claims, equipment-related costs, and certain personnel-related expenses. The company's operating income as a percentage of gross revenue also saw a decline, partially offset by lower rail and truck purchased transportation costs.
The company's Intermodal segment reported a 5% decrease in revenue and a 31% drop in operating income compared to the same quarter last year. Dedicated Contract Services also faced a downturn, with a 4% revenue decline and a 15% operating income decrease. The Integrated Capacity Solutions segment experienced a 21% revenue decrease and widened its operating loss to $13.3 million. However, the Final Mile Services segment showed resilience with a 5% increase in revenue and a 33% surge in operating income, driven by new contracts implemented over the past year.
J.B. Hunt's management pointed to the soft freight market and its impact on over-the-road truck competition as contributing factors to the company's performance. "Our results reflect the challenges of a soft freight environment and the competitive pressures it brings," said Brad Delco, Senior Vice President of Finance. "We are focused on navigating these market conditions while continuing to invest in our people, technology, and capacity to drive long-term growth."
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