JB Hunt (JBHT
126.80, +4.97) has jumped 4.1% in premarket after beating quarterly
The freight carrier reported above-consensus second quarter earnings of $1.37 per share on a 23.9% year/year jump in revenue to $2.14 bln, which also exceeded estimates.
Total operating revenue grew 23.7% year/year to $2.14 bln while operating revenue excluding fuel surcharges grew 20.8% to $1.87 bln.
Operating income jumped 31.3% to $214.80 mln due to customer rate increases, volume growth, and increases in revenue producing truck counts, which offset higher rail, over the road, and outsourced dray purchased transportation costs, start-up costs associated with new contracts, higher driver wages and recruiting costs, and higher office and support personnel costs.
Looking at the segment breakdown, Intermodal revenue jumped 16.3% to $1.16 bln. Load volumes increased 4.0%, but transcontinental loads declined 2.0% due to network congestion and freight mix changes away from higher cost dray movements. Revenue per load, excluding fuel surcharge revenue, grew 8.0% year/year. Operating income jumped 22.1% to $133.99 mln
Dedicated revenue grew 28.7% to $529.98 mln. Productivity, excluding fuel surcharges, increased 7.0% year/ year due to higher customer rates, improved integration of assets between customer accounts, and increased customer supply chain fluidity. Operating income increased 20.3% to $58.45 mln. The growth was due to improved productivity and a higher number of trucks under contract.
Integrated Capacity Solutions grew 56.1% to $347.30 mln. Volumes grew 38.0% while revenue per load increased 13.0% due to higher spot contract rates. Spot volumes grew 63.0% while contractual volumes increased 28.0%. The company reported operating income of $14.93 mln, up from an operating loss of $293,000 one year ago.
Truck revenue increased 7.1% to $101.24 mln. The increase was fueled by higher customer rates and freight mix changes. The company operated 1,976 tractors at the end of the quarter, down from 2,072 one year ago. Operating income spiked 34.5% to $7.48 mln. Higher revenue per load and lower equipment ownership costs were partially offset by higher driver wages, higher independent contractor costs per mile, and increased driver and independent contractor recruiting costs.
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