Business & Investment

JB Hunt reports $ 3.14 billion in revenue in the third quarter

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JB Hunt Transport Services experienced both revenue and net income growth in the third quarter of 2021, the company reported on October 15.

Lowell, Ark-based transportation and logistics company posted net income of $ 199.8 million, or diluted earnings per share, of $ 1.88 over the three months to September 30. In contrast, net income for the same period was $ 125.5 million and $ 1.18. Previous year. Total operating revenue increased 27% from $ 2.47 billion to $ 3.14 billion.

According to Zacks Consensus Estimate, this result exceeded Wall Street investment analysts’ expectations of $ 1.77 per share and $ 3 billion in quarterly earnings.

All segments contributed to double-digit revenue growth compared to the year-ago quarter. The JB Hunt 360 Marketplace has contributed to its growth. Total freight transactions on the market increased from $ 358 million in the year-ago quarter to $ 518 million.

The Track Road segment reported that third-quarter 2021 revenue increased 87% from $ 109 million in the same quarter last year to $ 204 million. The increase in revenue is due to a 65% increase in revenue per load and a 12% increase in the number of loads compared to a year ago. The increase in revenue per load is due to a 36% increase in revenue per mileage and a 20% increase in average travel distance.

Operating income in the truck loading segment increased 397% from $ 2.9 million in the year-ago quarter to $ 14.7 million. This was partially offset by higher transportation costs purchased, higher driver and hiring costs, higher non-driver labor costs related to salaries, wages and incentive compensation, and higher group medical costs. This is due to the increase in the number of shipments and the revenue per shipment.

Revenues in the Final Mile Services segment in the last quarter increased 13% from $ 182 million last year to $ 206 million. Revenue per stop increased by approximately 17% year-on-year, primarily due to changes in customer composition and higher rates. The addition of multiple new customer contracts implemented last year was offset by the reduction of outages associated with labor and supply chain constraints. The outage count within the segment has decreased by 3%.

FMS operating profit fell 39% from $ 2.1 million in the year-ago quarter to $ 1.3 million. This decrease is primarily due to implementation costs associated with new long-term contract operations, increased costs for third-party contract carriers, and with certain customers related to product availability as a result of supply chain disruptions. This is due to a decrease in transaction volume. Increased labor costs related to salaries, wages and incentive compensation, and group health care costs also contributed to the decline.

Dedicated Contract Services (DCS) segment reports that revenue increased 20% from $ 535 million to $ 665 million. The report shows profits from a 7% increase in revenue per track per week compared to the previous period, while there were trucks in the fleet that generated additional 1,527 revenues by the end of the quarter. I am.

DCS operating profit fell 3% from $ 80 million to $ 78.1 million. Increased asset returns and productivity were offset by increased wages and hiring costs for drivers, non-driver labor costs, wages and incentive compensation, and other costs associated with implementing new long-term contract businesses.

Revenue in the Integrated Capacity Solutions (ICS) segment increased 55% from $ 431 million to $ 666 million. This is because truck loading increased 14% year-on-year, while revenue per load increased 48%. Revenue per shipment was positively impacted by contracts and rising spot rates in the truck cargo business. Of the total ICS revenue reported, approximately $ 397 million was executed through the JB Hunt 360 Marketplace.

ICS operating profit increased from an operating loss of $ 18.3 million over the same period last year to $ 14.7 million. This is because the gross profit margin increased from 7.6% in the previous fiscal year to 12% in the current fiscal year. The benefits of higher gross margins were partially offset by higher labor and technology costs compared to the same period in 2020.

Revenues increased 17% from $ 1.21 billion to $ 1.41 billion, according to reports from the Intermodal segment. Intermodal freight volume decreased by 6% overall compared to the same period in 2020. Transport volume for the quarter was adversely affected by continued rail regulation across the network, increased detention of follow-on equipment at customer facilities, and labor shortages on both rail and truck networks. However, demand for intermodal capacity remained strong. Revenue per load increased 18% year-on-year.

Operating income in the intermodal segment increased 52% from $ 108.4 million to $ 165.1 million. This increase was primarily due to higher customer rates and cost recovery efforts compared to the same period last year. Toll and cost recovery efforts are partially offset by rising transportation costs purchased by railroads and third parties, driver wages, profits, hiring costs, and increased activity-based costs to address network inefficiencies. it was done.

JB Hunt Transport Services Inc.Is ranked 4th NS Transport Topic Top 100 List of Largest Employment Carriers in North America..It also ranks No.5 NS TT list of 50 of North America’s largest logistics companies..

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JB Hunt reports $ 3.14 billion in revenue in the third quarter JB Hunt reports $ 3.14 billion in revenue in the third quarter

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