J.B. Hunt Transport Services | $JBHT Stock | Shares Fall After Q2 Earnings Beat Street View

J.B. Hunt Transport Services

J.B. Hunt Transport Services (NASDAQ: JBHT)


Shares of J.B. Hunt Transport Services soared 4.4% in premarket trade on Monday, but lost the gains in the early hours of regular trading.

The Lowell, Arkansas-based trucking company revealed solid second-quarter financial results for the three months ended June 30, 2018. Both profit and revenue toppled the expectations of Wall Street analysts.

The company also returned $50 million to investors through the repurchase of approximately 420,000 shares during the quarter.

JB Hunt shares were trading at $116.86 after losing $4.97, or 4.08% at 10:50 am in New York. The stock has jumped nearly 33% in the last twelve months, and rallied 6% since the beginning of the year.

JBHT Earnings & Outlook

The company posted a profit of $151.7 million, or $1.37 per share. This compares to $97.9 million, or $0.88 per share reported in the earlier-year quarter.

Analysts polled by Thompson Reuters had modelled earnings of $1.28 per share. The company said effective tax rate dropped from 37.4% to 26.0%.

Total revenue was $2.14 billion, an increase of 24% from $1.73 billion in the second quarter of last year.

The average estimate by analysts was $2.06 billion, according figures compiled by Thompson Reuters. All its business segments finished above analyst estimates with Intermodal revenue jumping 16% to $1.16 billion.

The Dedicated Contract Services and Integrated Capacity Solutions segments posted revenues of $530 million and $347 million, respectively.

Meanwhile, the Truckload segment saw revenue jump 7% to 101 million, from the year-ago period.

J.B. Hunt Transport Services, Inc. Company Profile

J.B. Hunt Transport Services provides delivery and surface transportation services in the US, Mexico, and Canada. The company operates through the following segments: Intermodal, Dedicated Contract Services, Integrated Capacity Solutions, and Truckload.

The Intermodal segment provides intermodal freight solutions, including delivery and destination services.

This segment owns and operates approximately 88,610 pieces of trailing equipment; manages a chassis fleet consisting of 77,946 units; 764 independent contractor trucks, 4,776 company-owned tractors, and 5,781 company drivers.

The Dedicated Contract Services segment engages in the design, development, and execution of supply-chain solutions, which support a variety of transportation networks.

It operates 8,124 company-owned trucks, 59 independent contractor trucks, and 544 customer-owned trucks, as well as 7,232 customer-owned trailers, and 18,579 owned pieces of trailing equipment.

The Integrated Capacity Solutions division provides transportation logistics solutions and traditional freight brokerage; and refrigerated, flatbed, expedited, and less-than-truckload services, as well as various intermodal and dry-van solutions. It operates 44 remote sales branches or offices.

The Truckload segment offers dry-van and full-load freight services by making use of tractors operating over highways and roads. It operates approximately 1,290 company-owned tractors.

J.B. Hunt Transport Services also arranges for the transportation of freight, such as appliances, specialty consumer items, beverages and food, paper and forest products, automotive products, building materials, cosmetics and soaps, chemicals, agricultural products, general merchandise, and electronics.

The company was founded in 1961 by Johnelle D. Hunt and Johnnie Bryan Hunt, Sr. –Reuters