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J.B. Hunt Transport Services 8-K Report, Financial Results (Oct 15, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 15, 2024
Period End
October 15, 2024
Security
JBHT
In the record · 2016–202610-K1110-Q348-K102

JBHT filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 102 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Feb ’20Feb ’20
  2. Leadership change8-K · Jan ’22Jan ’22
  3. Material agreement8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 8-K filed October 15, 2024. Cited figures are marked; the original filing is the authoritative source.

J.B.

Hunt Transport Services, Inc. (NASDAQ: JBHT) reported third quarter 2024 U.S. GAAP net earnings of $152.1 milliona, or $1.49 per diluted share, versus $187.4 million, or $1.80 per diluted share, in the third quarter of 2023. Total operating revenue was $3.07 billion, down 3% from $3.16 billion, and operating income was $224.1 million, down 7% from $241.7 million. The filing attributes the revenue decline mainly to lower gross revenue per load in Intermodal (JBI) and JBT, lower load volume in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), and fewer stops in Final Mile Services (FMS), partly offset by 5% load growth in JBI.

Operating income fell on lower revenue in all segments except JBI, along with higher personnel-related, insurance and claims, and equipment-related expenses. The effective income tax rate was 25.2% versus 18.2% a year earlier, and management expects a 2024 annual tax rate of approximately 24.5%. By segment, Intermodal revenue was flat at $1.56 billionb while operating income fell 13% to $111.8 million.

Dedicated revenue declined 5% to $846 millionc and operating income fell 7% to $95.5 million. ICS operating loss narrowed to $3.3 million from $9.4 million as gross profit margin rose to 17.9% from 12.8%, even though segment revenue fell 7% to $278 million. FMS revenue declined 3% to $218 million, and Truckload (JBT) revenue fell 12% to $173 million while its operating income rose 6% to $8.2 million.

On the balance sheet and cash flow side, debt outstanding was about $1.53 billiond at September 30, 2024, cash and cash equivalents were about $120 million, and nine-month net capital expenditures were about $488 million versus $1.32 billion a year earlier. The company repurchased about 1.2 million shares for approximately $200 million in the quarter and had about $967 million remaining under its share repurchase authorization. Shares outstanding were approximately 100.8 million at September 30, 2024.

02—Key points

Key Highlights

  1. Q3 2024 U.S. GAAP net earnings were $152.1 million, or $1.49 per diluted share, down from $1.80 per diluted share in Q3 2023.
  2. Total operating revenue was $3.07 billion, down 3%; operating income was $224.1 million, down 7%.
  3. Intermodal revenue was flat at $1.56 billion on 5% volume growth, but segment operating income fell 13% to $111.8 million on lower yields.
  4. ICS operating loss narrowed to $3.3 million from $9.4 million, with gross profit margin rising to 17.9% from 12.8%.
  5. Effective tax rate rose to 25.2% from 18.2%, and the company expects a 2024 annual tax rate of approximately 24.5%.
  6. Share repurchases totaled approximately $200 million in Q3 2024, leaving about $967 million under the authorization.
  7. Net capital expenditures for the nine months ended September 30, 2024 were about $488 million, versus $1.32 billion a year earlier.

03—Questions

Frequently Asked Questions

  1. Why did J.B. Hunt's earnings per share decline in the third quarter of 2024?

    Diluted EPS was $1.49 versus $1.80 a year earlier. Operating income fell 7% to $224.1 million, mainly because revenue declined in all segments except Intermodal and expenses rose for personnel, insurance and claims, and equipment. Net interest expense also increased due to higher interest rates, and the effective tax rate rose to 25.2% from 18.2%, partly because of a discrete benefit recognized in the prior-year quarter.

  2. Which segments drove revenue performance in the quarter?

    Intermodal revenue was flat at $1.56 billion, supported by a 5% increase in load volume that offset a 5% decline in gross revenue per load. Dedicated revenue fell 5% to $846 million, Final Mile Services fell 3% to $218 million, Integrated Capacity Solutions fell 7% to $278 million, and Truckload fell 12% to $173 million.

  3. How did the company's profitability by segment change?

    Intermodal operating income fell 13% to $111.8 million and Dedicated fell 7% to $95.5 million. ICS improved to an operating loss of $3.3 million from $9.4 million, and Truckload operating income rose 6% to $8.2 million. Final Mile Services operating income fell 7% to $12.0 million.

  4. What did J.B. Hunt do with its capital and cash in the quarter?

    The company repurchased about 1.2 million shares for approximately $200 million in the third quarter and had about $967 million left under its repurchase authorization. Nine-month net capital expenditures were about $488 million, compared with $1.32 billion in the same period of 2023. Cash and cash equivalents were about $120 million at September 30, 2024, and debt outstanding was about $1.53 billion.

  5. What guidance did the company provide?

    The filing states that management expects the 2024 annual effective tax rate to be approximately 24.5%. The filing does not provide other forward-looking financial guidance in this report.

04—Continue

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