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J.B. Hunt Transport Services reported that second-quarter profits and revenue declined versus year-ago levels.
The Lowell, Ark.-based transportation and logistics company on July 16 posted Q2 net earnings of $121.7 million, or $1.14 per diluted share, for the three months ending June 30. That compared with $133.6 million, or $1.23 per diluted share, during the same time the previous year.
Total Q2 revenue decreased by 5% to $2.15 billion compared with $2.26 billion last year. Operating income for the second quarter fell 9% to $175.2 million compared with $193.1 million last year. The prior-year Q2 result included a $20 million pretax charge for settlement of a final-mile service claim.
Revenue performance was primarily driven by a 2% volume decline in intermodal, an 11% volume decline in the Integrated Capacity Solutions segment and 5% fewer stops in the Final Miles Services segment. Those were all partially offset by a 17% increase in loads in Truckload segment.
The company’s Q2 results outpaced expectations of investment analysts on Wall Street, who forecast EPS of 83 cents per share and quarterly revenue of $2.06 billion, according to Zacks Consensus Estimate.
The Intermodal Segment saw Q2 revenue decrease by 7% to $1.07 billion from $1.15 million, during the same time the previous year. Operating income for the segment was down 14% to $107 million from $124 million last year.
Dedicated Contract Services revenue in Q2 decreased by 1% to $533 million from $536 million last year. Operating income for the segment was down 9% during the quarter to $83.1 million from $76 million.
Revenue in the Integrated Capacity Solutions segment decreased 9% to $304 million from $334 million. Q2 Operating loss for the segment widened to $13.1 million from $600,000 last year.
Final Miles Services revenue decreased 2% to $140 million from $143 million. Operating loss for the segment narrowed to $5.2 million from $15.8 million during the same time last year.
The Truckload segment saw Q2 revenue increase by 9% to $108.3 million from $100 million the previous year. Operating income for the segment was down 61% during the quarter to $3.5 million from $8.9 million last year.
J.B. Hunt Transport Services Inc. ranks No. 4 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. It also ranks No. 4 on the TT list of the 50 largest logistics companies in North America.
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