J.B. Hunt Transport Services beat lowered first-quarter expectations Tuesday after the market closed.
The Lowell, Arkansas-based multimodal transportation provider reported earnings per share of $1.17, which was 3 cents ahead of the consensus estimate but 5 cents lower year over year. Consolidated revenue of $2.92 billion was 1% lower y/y.
Earnings estimates for transportation companies have been moving lower the past several weeks as March, the seasonally strongest month of the quarter, failed to materialize as analysts had hoped.
J.B. Hunt’s operating income fell 8% y/y to $179 million. The company pointed to elevated costs from higher insurance and claims expenses as well as increased medical insurance and maintenance expenses as the reasons for the decline.
The company’s intermodal unit reported $1.47 billion in revenue, a 5% y/y increase. Loads increased 8% but revenue per load was off 2%. The segment recorded a 93.6% operating ratio (inverse of operating margin), which was 90 basis points worse y/y.
The dedicated fleet reported a 4% y/y revenue decline to $822 million as average trucks in service fell 5%, but revenue per truck per week increased 2%. A 90.2% OR was 110 bps worse y/y.
J.B. Hunt will host a call at 5 p.m. EDT on Tuesday to discuss first-quarter results.
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