J.B. Hunt Transport Services, Inc. Reports Q3 2023 Earnings Below Estimates

LOWELL, Ark. – J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) released its financial results for the third quarter of 2023 on October 17, revealing that the company’s earnings fell short of estimates. The transportation giant reported a decline in both revenues and earnings per share, reflecting ongoing challenges in the industry.

In the third quarter of 2023, J.B. Hunt’s total operating revenue stood at $3.16 billion, marking an 18% decrease compared to the same period in 2022 when it was $3.84 billion. This decline was primarily attributed to a 14% decrease in Intermodal (JBI) and a 22% decrease in Truckload (JBT) revenue per load (excluding fuel surcharge revenue). The Integrated Capacity Solutions (ICS) segment also experienced a sharp 38% decrease in volume.

J.B. Hunt’s net earnings for the quarter, calculated under U.S. GAAP, were $187.4 million, resulting in diluted earnings per share of $1.80. These figures were substantially lower than the third quarter of 2022, which saw net earnings of $269.4 million and earnings per share of $2.57, representing a 30% drop in EPS.

Operating income for the third quarter of 2023 came in at $241.7 million, a 33% decrease from the same period last year when it was $362.2 million. This decline was attributed to lower revenue across all business segments, higher equipment-related costs, and increased insurance and claims expenses. Furthermore, the third quarter of 2023 included an $8 million net loss from the sale of equipment.

J.B. Hunt’s segment information for the quarter showed varied results:

  • Truckload (JBT) segment revenue was $196 million, a 17% decrease from the previous year.
  • Intermodal (JBI) segment revenue reached $1.56 billion, down 15%.
  • Dedicated Contract Services (DCS) reported segment revenue of $892 million, remaining relatively stable with a 4% decline.
  • Integrated Capacity Solutions (ICS) segment revenue was $298 million, a substantial 48% decrease, leading to an operating loss of $9.4 million.
  • Final Mile Services (FMS) segment revenue was $226 million, reflecting a 15% decrease, with operating income increasing by 33%.

J.B. Hunt Transport Services, Inc. is a prominent Fortune 500 company and is included in the S&P 500 index and Dow Jones Transportation Average. The company’s stock is listed on NASDAQ under the ticker symbol JBHT.

Looking ahead, the company anticipates a 2023 annual tax rate between 22.0% and 23.0%. J.B. Hunt had earlier announced an agreement to acquire the brokerage operations of BNSF Logistics, LLC, with the deal closing on September 30, 2023. The company continues to navigate a challenging operating environment, marked by fluctuations in revenue and earnings, in the ever-evolving transportation industry.