First look: J.B. Hunt’s Q3 earnings

J.B. Hunt Transport Services reported Q3 revenue of $3.68 billion, surpassing analysts' lowered expectations. Earnings per share (EPS) were $1.82, 1 cent higher than the revised expectation. The company faced higher costs, including a 4-cent EPS headwind from a higher tax rate and a 2-cent decline in net interest expense. These costs were partially offset by a 2-cent reduction in net interest expense.

Intermodal revenue grew 20% year-over-year to $1.83 billion, with loads up 9% and revenue per load increasing 11%. Higher fuel prices contributed to the revenue growth. Volumes rose 18% year-over-year in the East and 1% on transcontinental lanes. A 3% decline in length of haul due to a shift to the East was a modest headwind.

Dedicated operating ratio (OR) deteriorated 360 basis points year-over-year to 91.5%. Higher costs, including driver personnel, equipment, and employee benefits, impacted the quarter. The brokerage unit recorded a second consecutive operating profit after 13 quarters of losses. Overall, revenue increased by 11% year-over-year, driven primarily by higher revenue per truck per week, despite only a 3% increase in revenue per truck excluding fuel.