J.B. Hunt Shares Drop 7% as Earnings Miss Expectations Despite Modest Revenue Beat

J.B. Hunt Transport Services (NASDAQ:JBHT) delivered mixed results for the fourth quarter of 2024, with earnings falling short of analyst projections despite a slight revenue beat. Following the announcement, shares declined by more than 7% intra-day today.

The company reported quarterly earnings per share of $1.53, missing the consensus estimate of $1.64. Meanwhile, revenue totaled $3.15 billion, narrowly surpassing the expected $3.13 billion. Despite the top-line beat, revenue was down 5% year-over-year, reflecting weaker fuel surcharge revenue and pricing pressure in its core Intermodal segment.

Intermodal, J.B. Hunt’s largest revenue generator, saw revenue decline by 2% to $1.60 billion. Operating income in the segment decreased by 10% to $117.0 million. While demand trends for intermodal services were seasonally robust, particularly on eastbound shipments from Southern California, lower pricing undermined the benefits of increased volumes.

The Dedicated Contract Services (DCS) segment experienced a 5% revenue decline to $839 million. However, operating income in the segment grew by 5% to $90.3 million, indicating improved efficiency. The Integrated Capacity Solutions (ICS) unit faced steeper challenges, with revenue plunging 15% to $308 million and the segment posting an operating loss of $21.8 million.

Net income for the quarter rose modestly to $155.5 million, compared to $153.5 million in the same period last year. For the full year, J.B. Hunt reported a 6% drop in revenue to $12.09 billion, while diluted earnings per share fell 20% to $5.56.