J.B. Hunt Reports $2.9 Billion in Revenue for Q2
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J.B. Hunt Transport Services reported that second-quarter net income declined on revenue that fell just short of $3 billion.
The Lowell, Ark.-based transportation and logistics company on July 16 posted net earnings of $135.9 million, or $1.32 a diluted share, for the three months ending June 30. That compared with $189.6 million, or $1.81, during the same time the previous year. Total revenue decreased by 7% to $2.93 billion from $3.13 billion. Operating income decreased 24% to $205.7 million compared with $270.7 million a year ago.
The results missed expectations from investment analysts on Wall Street, who had been looking for EPS of $1.51 and quarterly revenue of $3.04 billion, according to Zacks Consensus Estimate. The company’s Truckload segment saw Q2 revenue decrease 12% to $168.1 million from $191.8 million. The revenue decline was due to a decrease in load volume and revenue per load, Hunt said. Total average effective trailer count decreased 4%. Operating income in the segment declined 7% to $3.55 million from $3.8 million, driven primarily by the revenue decline.
Final Mile Services segment Q2 revenue increased 5% to $235.3 million from $223.9 million. The rise was primarily driven by multiple new contracts implemented over the past year and partially offset by ongoing efforts to improve revenue quality and profitability across various accounts. These efforts resulted in some loss of business in addition to general weakness in demand across some of the end markets served, Hunt said. Operating income in the segment jumped 33% to $19.8 million from $14.8 million.
Integrated Capacity Solutions segment Q2 revenue fell 21% to $270.4 million from $343.7 million. Volume in the segment decreased 25% versus the prior-year period. Revenue per load increased 5% compared with Q2 of 2023 due to increases in both contractual and transactional rates as well as changes in customer mix. The segment also reported an operating loss of $13.3 million, compared with a loss of $4.4 million last year.
Dedicated Contract Services segment revenue declined 4% during the quarter to $851 million from $887.6 million. The revenue decrease was driven by a slight decline in average trucks combined with a decline in productivity as defined by revenue per truck per week, Hunt said. The report noted there were 339 fewer revenue-producing trucks in the fleet by the end of the quarter compared to the prior year. Operating income decreased 15% to $96.4 million from $113.6 million.
Intermodal segment revenue declined 5% to $1.41 billion from $1.49 billion. While transcontinental network loads increased 4%, eastern network loads decreased 7%. The report noted that overall performance continued to be pressured by the soft freight market and its impact on over-the-road truck competition in the eastern network. Operating income fell 31% to $99.2 million from $142.8 million.
J.B. Hunt Transport Services ranks No. 3 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 3 on the TT Top 100 logistics companies list.
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