J.B. Hunt Transport Services exceeded third-quarter expectations on Tuesday, leading to a 7% increase in after-hours trading. The company, a provider of multimodal transportation services, experienced stable and improving trends across its various service offerings in anticipation of a turnaround in the freight market.
J.B. Hunt (NASDAQ: JBHT) reported earnings per share of $1.49, surpassing the consensus estimate by 8 cents but falling 31 cents lower compared to the previous year.
The intermodal segment of J.B. Hunt witnessed growing demand throughout the quarter, with revenue remaining flat year over year at $1.56 billion despite an increase in loads by 5%. However, revenue per load saw a corresponding decrease.
Total intermodal loads rose by 7% in July and by 4% in both August and September. In comparison, total intermodal traffic on U.S. Class I railroads increased by 11% during the same period, according to the Association of American Railroads.
The company’s transcontinental loads climbed by 7% year over year, with significant growth in eastbound transcontinental lanes from Southern California. Meanwhile, Eastern network loads saw a 3% increase, but volumes in the East are still facing challenges due to low one-way truck pricing and freight diversion prior to a recent dockworker strike.
J.B. Hunt’s brokerage segment showed signs of improvement, reporting a $3.3 million operating loss in the quarter, a $10 million improvement from the previous quarter and a significant decrease from a year ago.
Dedicated revenue declined by 5% to $846 million, with average trucks in service down by 3% and revenue per truck per week also decreasing. Despite adding 258 trucks to its service, startup costs within new accounts impacted margins.
Final-mile revenue dropped by 3% to $218 million, with total stops declining by 6%, although revenue per stop increased by 3%.
Overall, J.B. Hunt’s performance in various segments showcased a mix of challenges and improvements, with shares rising by 7.1% in after-hours trading following the positive third-quarter results.
