Lowell, Ark. – J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) disclosed its first quarter 2024 earnings, revealing a challenging quarter marked by a significant decline in revenue and operating income.
The company reported a total operating revenue of $2.94 billion for the first quarter of 2024, marking a notable 9% decrease compared to the same period in 2023. Operating income also saw a substantial decline, dropping by 30% to $194.4 million from $277.5 million in the first quarter of 2023. Similarly, earnings per share (EPS) fell by 35%, from $1.89 in Q1 2023 to $1.22 in Q1 2024.
The decline in revenue was primarily attributed to various factors across J.B. Hunt’s segments. Intermodal (JBI) and Truckload (JBT) segments both experienced a 9% decrease in segment gross revenue per load. Integrated Capacity Solutions™ (ICS) suffered a significant 26% revenue decline, while Dedicated Contract Services® (DCS®) saw a 2% drop in revenue. The only segment to experience growth was Final Mile Services® (FMS), which saw a modest 2% revenue increase.
J.B. Hunt’s operating income decrease was primarily due to lower volumes and yield pressure across its segments. Increased expenses in equipment, insurance, claims, and bad debt further impacted operating income.
Despite the challenges, J.B. Hunt remains optimistic about its future outlook. The company highlighted revenue growth in Final Mile Services® (FMS), driven by new contracts, as a positive indicator. Moreover, it continues to focus on optimizing its operations and improving efficiencies across all segments.
The company’s net capital expenditures for the first quarter of 2024 amounted to approximately $166 million, a significant decrease from $380 million in the same period in 2023. J.B. Hunt ended the quarter with $64 million in cash and cash equivalents and had approximately $366 million remaining under its share repurchase authorization.
