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J.B. Hunt (JBHT) Beats on Q3 Earnings, Misses Revenues

J.B. Hunt Transport Services Inc.JBHT reported third-quarter 2015 financial results wherein the bottom line surpassed the Zacks Consensus Estimate while the top line missed.

This transportation company's earnings came in at 99 cents per share, above the Zacks Consensus Estimate of 96 cents. Earnings were also up 13.8% on a year-over-year basis.

Total operating revenue decreased 0.9% year over year to $1,586.5 million and also missed the Zacks Consensus Estimate of $1,620 million. Further, operating income in the quarter improved 12.6% year over year to $193.8 million.

The Intermodal (JBI) division reported quarterly revenues of $948.8 million, down 1.5% year over year. Segmental results were hurt by the lingering effects of disruptive shipping patterns following the West Coast port disturbances. Slow rail service recovery and soft consumer driven freight demand have also impeded load volume growth. Meanwhile, operating income moved up 0.9% year over year to $126.1 million.

Dedicated Contract Services (DCS) revenues grew 2.6% year over year to $370.4 million in the third quarter on higher number of revenue-generating trucks. The average truck count stood at 7,098, up 6.7%. Operating income increased 31.5% year over year to $45.1 million.

Integrated Capacity Solutions (ICS) revenues fell 6.6% year over year to $172.9 million. On a year-over-year basis, revenue per load fell 14.4% primarily due to lower fuel prices and weak transactional customer demand. Operating income rose 36.9% year over year to $11.5 million.

Truck (JBT) revenues inched up 1.8% year over year to $97.5 million. At the end of the reported quarter, the company operated 2,080 tractors, up 14.5% year over year. Operating income improved 160.4% to $11.2 million.

Liquidity

At the end of the reported quarter, cash and cash equivalents were $5,542 million compared with approximately $5,961 million at 2014-end. Long-term debt stood at $993.4 million compared with $683.5 million at the end of 2014.

Zanks Rank & Key Picks

J.B. Hunt currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space are YRC Worldwide Inc. YRCW , Southwest Airlines Co. LUV and American Airlines Group AAL . All three stocks hold a Zacks Rank #2 (Buy).

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HUNT (JB) TRANS (JBHT): Free Stock Analysis Report

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AMER AIRLINES (AAL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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