JB Hunt reports second quarter revenue of $ 2.91 billion
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JB Hunt Transport Services Inc. reported earnings and revenue gains for the second quarter of 2021.
For the three months ending June 30, the Lowell, Ark. reported net income of $ 172.2 million, or $ 1.61 per diluted share, compared to $ 121.7 million, $ 1.14, in the second quarter of 2020. Total operating income was increased by 36%. to $ 2.91 billion versus $ 2.15 billion.
The results exceeded forecasts by Wall Street analysts, who expected EPS of $ 1.55 per share on quarterly revenue of $ 2.72 billion, according to Zacks Consensus Estimate.
“The segments are all performing well and presenting strong evidence that supports both our strategy at this point and what I think is strong momentum,” JB Hunt chairman John Roberts said on a conference call with investors on July 19 after the results were published. “Given the work we’ve done with our customers, current trends in demand, order flow and sales pipelines, coupled with data revealing some of the lowest inventory levels we’ve seen, gives us confidence in pursuit of this momentum. “
Second quarter revenue for the company’s full truck segment increased 70% to $ 184 million from $ 108.3 million a year ago, thanks to a 40% increase in revenue per mile loaded and a 13% increase in average trip length. Segment operating profit climbed to $ 14.2 million from $ 3.5 million in the second quarter of 2020. The gain was attributed to the increase in the number of loads and revenue per load that were partially offset by increased purchased transport expenditure and higher remuneration expenditure for non-driver staff.
Intermodal segment revenues increased 21% to $ 1.29 billion from $ 1.07 billion last year, as load volumes increased 6% from same period in 2020 Operating income increased 26% to $ 134.6 million from $ 107 million in the previous year quarter.
“Customer demand has been very strong and speed has been the bottleneck,” added Darren Field, president of intermodal at JB Hunt. “We pointed out that we have new containers on the water today. We have great confidence in our ability to receive between 3,000 and 4,000 in the third quarter.
The Last Mile Services segment saw revenue increase 52% in the second quarter to $ 212 million from $ 139.6 million last year, mainly due to the addition of new customer contracts. The period last year also included the temporary suspension of operations at several customer sites due to the pandemic. Segment operating profit reached profit of $ 10.7 million for an operating loss of $ 5.2 million, mainly due to higher volumes compared to last year’s levels and d ” $ 3.2 million in profit from a net claim settlement. These factors were partially offset by higher employee compensation costs.
The company’s Integrated Capacity Solutions segment saw revenue nearly double to $ 607 million, from $ 304.3 million last year, as load volumes increased 30% year-over-year. previous year, while revenue per load increased 66%. Revenue per load was favorably affected by changes in the mix of customer freight and higher contract and spot rates, Hunt said. Segment operating profit rebounded to $ 3.1 million from an operating loss of $ 13.1 million in the second quarter of 2020, mainly due to higher gross profit margins and increased scale with the JB Hunt 360 loading panel service. These gains were partially offset by higher personnel and technology costs.
The company’s dedicated contract services segment reported that second-quarter revenue increased 17% to $ 621 million from $ 533.2 million last year, thanks to an improvement of 11 % of turnover per truck per week compared to the quarter of the previous year. However, operating profit fell 5% to $ 79 million from $ 83.1 million last year due to increases in driver salaries and hiring costs, salaries, wages and salaries. incentive compensation for non-driver staff, higher group medical costs and high costs related to the implementation of long-term contracts.
While noting that Hunt has beaten Wall Street expectations, Cowen and Co. analyst Jason Seidl pointed out that the cost pressures it faced in the second quarter, related to compensation and purchased transportation costs , weighed on the results.
“JBHT reported a quarter that was slightly better than expected, due to a backdrop of strong demand, partially offset by cost headwinds primarily associated with labor shortages across the supply chain,” Seidl wrote in a July 20 report. “The management of the cited challenges was in line with our survey of carriers in the second quarter, which we believe will be a major theme in our coverage over the coming weeks. “
JB Hunt Transport Services Inc. ranks 4th on the Transport Topics Top 100 list of largest for-hire carriers in North America, and 5th on TT’s 50 Best Logistics Companies list.
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