JB Hunt 1Q Revenue Up But Income Down

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J.B. Hunt Transport Services Inc. of Lowell reported higher first-quarter revenue but lower income Tuesday.

The company generated $2.28 billion in revenue, up from $2.09 billion in the same quarter a year ago. Income was $104.8 million, down from $119.6 million.

Earnings per share was 98 cents, down from $1.09 a year ago. The revenue surpassed the estimates from Zacks Investment Research, which predicted $2.22 billion; the EPS fell short of the consensus estimate of $1.04.

J.B. Hunt said it paid out $12.3 million in bonuses to drivers and support personnel during the quarter amid the COVID-19 pandemic. The company’s annual shareholders meeting is scheduled for 10 a.m. April 23 at J.B. Hunt’s headquarters.

The company’s first-quarter results by segment are:

Intermodal 

Revenue was $1.15 billion, up from $1.09 billion in the same quarter of 2019. Operating income was down slightly to $102.3 million from $103.3 million. The company said revenue was offset by increased rail transportation costs and a $8.2 million payment to BNSF Railway Co. as part of a previous arbitration agreement.

Dedicated Contract Services 

Revenue was $541.7 million, up from $491.4 million. Operating income was $72.9 million, up from $50.1 million a year ago. The company said the lack of weather events during the quarter and increased productivity were the reasons for the strong income quarter.

Integrated Capacity Solutions 

Revenue was $335.5 million, up from $300.8 million a year ago. Operating income was a loss of $18.9 million, a significant decrease from a profit of $6.96 million in 2019. The company said increased costs to expand the Marketplace for J.B. Hunt 360, higher personnel costs and marketing expenses led to the income drop. Marketplace, the company’s digital logistics platform, generated $294 million in revenue in the quarter, of which $235 million came from the ICS segment.

Final Mile Services 

Revenue was $153.6 million, up from $110.5 million a year ago. Operating income was a loss of $3.3 million, down from a positive $164,000. FMS was a part of the DCS segment until this quarter. The company said income was affected by several customers’ businesses shutting down because of the pandemic and because of investments the company made in the segment.

Truck

Revenue was $104.9 million, up from $101.9 million. Operating income was $1.8 million, down from $7.2 million a year ago.