J.B. Hunt Transport Shares Rally on Q3 Results (JBHT)
J.B. Hunt Transport Services, Inc (NASDAQ: JBHT) soared 6.53% on Friday after the transportation company reported 14% increase in net profits in the fiscal third quarter even as sales rose compared to the year earlier quarter thanks to volume growth across Intermodal (JBI) and Integrated Capacity Solutions (ICS) divisions which helped in offsetting higher expenses in the Dedicated Services (DCS) and Truck (JBT) divisions.
The company reported earnings of 65 cents a share, missing analysts’ consensual estimate of 66 cents a share but 8 cents a share higher than year earlier quarter. Total revenue jumped by 10.6% to $1.30 billion. Analysts’ polled by Thomson Reuters had forecasted revenue of $1.28 billion.
In the fiscal third quarter, J.B. Hunt’s operating income climbed 12.1% YOY basis to $133.1 million. The operating margin came at 10.3%, up 20 basis points (bps) YOY basis.
Segment wise Performance:
Revenue from Company’s Intermodal segment rose 15% to $749 million, as load count also jumped by 15%. Operating income soared 25% from the year earlier period to $97.9 million.
Revenue from Dedicated Contract Services rose merely by 1% YOY to $273 million while operating income fell 14% compared to year earlier quarter to $25.6 million.
Revenue from Truck segment slumped 8% to $117 million as fleet volume contracted by 9% and load count fell by 2%. Operating income plunged 41% YOY to $4 million due to underutilization of assets.
Revenue from Integrated Capacity Solutions soared 30% from the year earlier quarter to $121 million as load count increased 38%. The operating income jumped 43% to $5.5 million YOY.
The company has now posted doubled digit quarterly growth for more than last 8 successive quarters. Thanks to its improved cash flows and stronger operating margins, rating agencies such as Moody’s Investors Services and Standard & Poor have boosted their rating on J.B. Hunt in recent months.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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