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JBHT Nasdaq· J.B. Hunt Transport Services Inc.
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JBHT Nasdaq· J.B. Hunt Transport Services Inc.
Earnings report Q4 2023

JBHT Reports Decrease in Revenue for Latest Quarter

Segments of Revenue

  • JBT segment revenue for the latest quarter was $789 million, representing a decrease of 16% compared to the previous year. Excluding fuel surcharges, revenue decreased by 17%.
  • The decrease in revenue was primarily driven by a 19% decrease in revenue per load, partially offset by a 3% increase in load volume compared to the previous year.
  • Load volume growth was primarily attributed to the continued expansion of J.B. Hunt 360box, which leverages the J.B. Hunt 360 platform to access drop trailer capacity for customers across the transportation network.

Strengths

  • JBHT's JBT segment experienced a significant increase in revenue of 40% in the previous year, reaching $937 million. This growth was primarily due to a 22% increase in load volume and an 8% increase in revenue per load compared to the previous year.
  • The expansion of J.B. Hunt 360box, which provides drop trailer capacity, contributed to the growth in load volume and revenue for the JBT segment.
  • JBHT's customer base includes a large number of Fortune 500 companies, indicating strong market presence and potential for future growth.

Challenges

  • The latest quarter saw a decrease in revenue for the JBT segment, primarily driven by a decrease in revenue per load.
  • Operating income for the JBT segment also decreased from $77 million in the previous year to $16 million in the latest quarter. This decrease was driven by the decline in revenue, an increase in loss on sale of equipment, and higher purchased transportation expense and equipment-related costs as a percentage of gross revenue.

Noteworthy

  • JBHT's JBT segment operated 13,561 company-owned trailers, 27 company-owned tractors, and employed 329 people, including 28 drivers, at the end of the latest quarter.
  • The JBT segment had 1,931 independent contractors operating within it.
  • The FMS segment, which is not the focus of this analysis, reported an increase in operating income to $47 million in the latest quarter, compared to $37 million in the previous year.

Summary

JBHT reported a decrease in revenue for the latest quarter, with the JBT segment experiencing a 16% decline in revenue compared to the previous year. This decrease was primarily driven by a decrease in revenue per load, although there was a slight increase in load volume. The expansion of J.B. Hunt 360box contributed to load volume growth in the previous year, but was not sufficient to offset the decline in revenue per load in the latest quarter. Despite this, JBHT's previous year's performance showcased significant revenue growth for the JBT segment, driven by increased load volume and revenue per load. The company's strong market presence and customer base, including Fortune 500 companies, provide potential for future growth. However, the decrease in operating income for the JBT segment, along with higher expenses, presents challenges that need to be addressed to improve profitability.

Source documents

Form 10-K  filed on Feb 23, 2024
124 pages scanned

Reference data

Company financials Q4 revenue 2.94B
Analyst estimates Q4 EPS missed by -29.91%
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