JB Hunt Transport Services Inc (JBHT) Reports Q3 2023 Earnings: Revenue and Earnings Per Share Down
JB Hunt Transport Services Inc (NASDAQ:JBHT) reports Q3 2023 revenue of $3.16 billion, down 18% from Q3 2022.
Operating income for Q3 2023 stands at $241.7 million, a decrease of 33% compared to the same period last year.
Earnings per share (EPS) for Q3 2023 is $1.80, down 30% from $2.57 in Q3 2022.
The company completed the acquisition of the brokerage operations of BNSF Logistics, LLC on September 30, 2023.
JB Hunt Transport Services Inc (NASDAQ:JBHT) released its third quarter 2023 earnings report on October 17, 2023. The company reported a decrease in revenue and operating income, reflecting the challenges faced in the current financial period.
Financial Performance Overview
JBHT's total operating revenue for Q3 2023 was $3.16 billion, a decrease of 18% compared to $3.84 billion for the same period in 2022. The decrease in revenue was primarily driven by a 14% and 22% decrease in Intermodal (JBI) and Truckload (JBT) revenue per load respectively, a 38% decrease in volume in Integrated Capacity Solutions (ICS), a 20% decrease in stops in Final Miles Services (FMS), and a 1% decline in average revenue producing trucks in Dedicated Contract Services (DCS).
Operating income for Q3 2023 decreased 33% to $241.7 million compared to $362.2 million for Q3 2022. This decrease was primarily due to lower revenue across all business segments, higher equipment-related costs, and higher insurance and claims expense compared to the same period last year.
Segment Performance
JBHT's Intermodal (JBI) segment reported a revenue of $1.56 billion, down 15% from Q3 2022, and an operating income of $128.0 million, down 41% from the same period last year. The Dedicated Contract Services (DCS) segment reported a revenue of $892 million, down 4% from Q3 2022, and an operating income of $102.4 million, also down 4% from the same period last year.
The Integrated Capacity Solutions (ICS) segment reported a revenue of $298 million, down 48% from Q3 2022, and an operating loss of $9.4 million compared to an operating income of $13.4 million in Q3 2022. The Final Mile Services (FMS) segment reported a revenue of $226 million, down 15% from Q3 2022, but an operating income of $13.0 million, up 33% from the same period last year.
Acquisition Update and Cash Flow
On September 14, 2023, JBHT announced it entered into a definitive agreement to purchase the brokerage operations of BNSF Logistics, LLC, which subsequently closed on September 30, 2023. For segment reporting purposes, the results of the operations acquired will be reflected in ICS beginning in the fourth quarter.
As of September 30, 2023, JBHT had a total of $1.4 billion outstanding on various debt instruments compared to total debt of $1.2 billion at September 30, 2022, and $1.3 billion at December 31, 2022. The company's net capital expenditures for the nine months ended September 30, 2023, approximated $1.3 billion compared to $1.0 billion for the same period in 2022.
In the third quarter 2023, JBHT purchased approximately 267,000 shares of its common stock for approximately $51 million. At September 30, 2023, the company had approximately $416 million remaining under its share repurchase authorization.
This article first appeared on GuruFocus.
