J.B. Hunt beats second-quarter profit estimates on strong intermodal growth

J.B. Hunt Transport Services, Inc.

J.B. Hunt Transport Services, Inc.

JBHT

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- J.B. Hunt Transport Services JBHT.O reported a second-quarter profit that beat analysts' estimates on Wednesday, driven by higher volumes in its intermodal segment.

The company's results kick off second-quarter earnings season for the U.S. trucking industry, where spot rates have surged after a government ban on commercial driver licenses for non-U.S. citizens triggered a sharp contraction in truck and driver supply.

  • The Arkansas-based company posted a profit of $1.91 per share in the quarter to June 30, compared to $1.31 per share a year before. Analysts, on average, expected a profit of $1.74 per share, according to data compiled by LSEG.

  • Quarterly revenue, including revenue from fuel surcharge, grew 19% to $3.5 billion, compared to analysts' expectation of $3.26 billion.

  • The company's shares were up 8.4% in extended trading.

  • Revenue growth was led by the Intermodal segment, which forms 50% of overall revenue and involves shipping goods via two or more modes of transport. Volumes in the segment grew 10% in the reported quarter.

  • Unlike rivals, J.B. Hunt's large exposure to intermodal shipping helped it win customers seeking to reduce their transportation costs by switching to rail from road.

  • The company was also aided by cost cuts it had implemented to weather the prolonged demand lull faced by the U.S. trucking industry.