J.B. Hunt Transport Services, Inc. Q3 2024 Results Disclosure This presentation and discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "estimates," or similar expressions are intended to identify these forward-looking statements. These statements are based on J.B. Hunt's current plans and expectations and involve risks and uncertainties that could cause future activities and results ...

Financial Data and Key Metrics Changes - Consolidated GAAP revenue declined by 3% year-over-year, operating income decreased by 7%, and diluted earnings per share fell by 17% [9] - The company experienced slight moderation in inflationary cost pressures, but the deflationary rate environment continued to pressure overall margin performance [8] Business Line Data and Key Metrics Changes - Intermodal segment saw a 5% year-over-year volume increase, driven by a 7% growth in Transcon and 3% growth in the East [21] - Integrated Capacity Solutions (ICS) gross revenue declined by 7% year-over-year, with a 10% decline in volume, partially offset by a 3% increase in revenue per load [26] - Truckload segment gross revenue was down 12% year-over-year, driven by a 6% decrease in both volume and revenue per load [28] Market Data and Key Metrics Changes - The company noted a return to more normal seasonal demand patterns across its businesses in Q3 [4] - Some customers began using more mini bids to fill out-of-cycle capacity needs, indicating a shift towards more collaborative long-term planning discussions [12] Company Strategy and Development Direction - The company remains focused on delivering exceptional value to customers through operational excellence, scaling long-term investments in people, technology, and capacity, and driving long-term value for shareholders [4][5] - The strategy includes a focus on repairing margins to generate acceptable returns for reinvestment in the business [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and growth potential, emphasizing the importance of operational excellence and customer service [7] - The company is preparing for an eventual churn in the freight market and is focused on controlling costs while supporting future growth [6] Other Important Information - The company expects net capital expenditures for 2024 to be approximately $625 million, down from previous expectations of $650 million to $700 million [11] - The company repurchased approximately $200 million of stock during the quarter, indicating a disciplined approach to capital allocation [11] Q&A Session All Questions and Answers Question: Can you estimate how much was pulled forward in results? - Management indicated that the results were a mixed bag regarding pull forward, with some customers shifting business back to the West Coast and others pulling inventory ahead of potential labor strikes [32] Question: How is rail service performing out of the West? - Management stated that they continue to engage with their Western provider to improve efficiency and that they do not expect any changes to their business strategy in the near term [39] Question: Can you discuss the sequential increase in revenue per load? - Management explained that the increase was due to a longer length of haul in Q3 compared to Q2, despite pricing pressure [46] Question: What is the competitive environment for new business in Dedicated? - Management noted that while some large private fleets are growing, they still see ample opportunities in the market and feel confident about their sales targets [51] Question: How sustainable is the improvement in ICS gross margin? - Management believes the gross margin improvement is unique to J.B. Hunt due to their focus on quality revenue and effective execution [60]

For the quarter ended September 2024, JB Hunt (JBHT) reported revenue of $3.07 billion, down 3% over the same period last year. EPS came in at $1.49, compared to $1.80 in the year-ago quarter. The reported revenue represents a surprise of +1.02% over the Zacks Consensus Estimate of $3.04 billion. With the consensus EPS estimate being $1.42, the EPS surprise was +4.93%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expe ...

JB Hunt (JBHT) came out with quarterly earnings of $1.49 per share, beating the Zacks Consensus Estimate of $1.42 per share. This compares to earnings of $1.80 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 4.93%. A quarter ago, it was expected that this trucking and logistics company would post earnings of $1.51 per share when it actually produced earnings of $1.32, delivering a surprise of -12.58%. Over the last four quarte ...

The upcoming report from JB Hunt (JBHT) is expected to reveal quarterly earnings of $1.44 per share, indicating a decline of 20% compared to the year-ago period. Analysts forecast revenues of $3.06 billion, representing a decrease of 3.2% year over year. Over the last 30 days, there has been a downward revision of 6.5% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of thi ...

J.B. Hunt Transport Services, Inc. (JBHT) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option. Let's delve deeper. Southward Earnings Estimate Revision: The Zacks Consensus Estimate for third-quarter 2024 earnings has been revised 17.4% downward over the past 90 days. For 2024, the consensus mark for earnings has moved 12% south in the same time frame. The bearish alterations in estimate revisions underscore a notable decline in brokers' confidence in ...

J.B. Hunt Transport Services' (JBHT) board of directors has approved a new share repurchase plan. As part of the program, which has no expiration date, $1 billion worth of shares are authorized for buyback. This new program will commence after the existing $500 million share repurchase plan is completed. The existing buyback plan was announced in July 2022. Under this existing program, the transportation company repurchased shares worth $228.3 million in the first six months of 2024. Details regarding the n ...

Core Viewpoint - J.B. Hunt Transport Services (JBHT) is currently rated as a Zacks Rank 5 (Strong Sell) due to declining earnings estimates following an earnings miss in July [1]. Company Overview - J.B. Hunt Transport Services, Inc. provides logistics solutions and operates through several segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT) [2]. - The JBI segment focuses on intermodal freight operations for rail carriers, while DCS includes private fleet conversion and final-mile delivery services [2]. - ICS offers single-source logistics management for clients outsourcing transportation activities, and FMS provides final-mile delivery services through a nationwide network [2]. - JBT is responsible for full-load, dry-van freight transported via roads and highways [2]. - The company was founded in 1961 and is headquartered in Lowell, AR [2]. Earnings History - J.B. Hunt has experienced seven consecutive misses of the Zacks Consensus Estimate, with the most recent quarter reporting earnings of $1.32 against a consensus of $15.54 [4]. - Consistent earnings misses indicate a lack of effective communication of expectations from management to the market [3]. Earnings Estimates - Recent earnings estimates for JBHT have been revised downward, with the current fiscal year consensus dropping from $6.53 to $5.73 over the last 60 days [5]. - The next year's estimates have also decreased from $8.35 to $7.59 in the same timeframe [5]. - The negative trend in earnings estimates is a significant factor contributing to the stock's Zacks Rank of 5 (Strong Sell) [5]. Market Context - Many stocks within the Zacks universe are experiencing negative earnings estimate revisions, leading to a broader trend of stocks falling to a Zacks Rank 5 (Strong Sell) [6].

Core Viewpoint - J.B. Hunt Transport Services, Inc. is facing significant challenges across its business segments, with second-quarter 2024 revenues falling short of expectations and declining year over year [1]. Financial Performance - The company reported second-quarter 2024 revenues of $2.93 billion, missing the Zacks Consensus Estimate of $3.03 billion and representing a 7% decline from the previous year [1]. - Total operating revenues, excluding fuel surcharge revenue, decreased by 6% year over year, driven by a 5% drop in gross revenue per load in Intermodal and a 25% decline in load volume in Integrated Capacity Solutions, along with 9% declines in Truckload and Dedicated Contract Services [2]. - However, Final Mile Services experienced a 5% revenue growth, primarily due to new contracts, and Integrated Capacity Solutions saw a 5% increase in revenue per load [2]. Cost and Expense Management - Operating expenses decreased by 12.2% year over year in 2023 and fell by 5.8% year over year in the first half of 2024, attributed to lower fuel costs and reduced transportation and labor expenses [8]. Debt and Cash Position - The company's cash and cash equivalents were reported at $53.50 million at the end of Q2 2024, significantly lower than its long-term debt of $1.48 billion, indicating potential liquidity issues [4]. - Net interest expense for the first half of 2024 rose by 21.9% year over year due to higher interest rates and debt issuance costs, despite some offset from increased interest income [3]. Shareholder Actions - J.B. Hunt has been active in rewarding shareholders through dividend payments and share repurchases, purchasing approximately 1,225,000 shares for $203 million in Q2 2024, with $163 million remaining under its share repurchase authorization [7]. Market Performance - The company's shares have declined by 15.5% year to date, contrasting with a 3.3% loss in the broader industry [6]. - J.B. Hunt has a history of disappointing earnings surprises, missing the Zacks Consensus Estimate in each of the last four quarters with an average miss of 12.77% [4].

The fair value of trading investments has been measured using the market approach (Level 1) and reflects quoted market prices. Trading investments are classified in other assets in our Condensed Consolidated Balance Sheets. The carrying amounts of all other instruments at June 30, 2024, approximate their fair value due to the short maturity of these instruments. As the result of state use tax audits, we have been assessed amounts owed from which we are vigorously appealing. We have recorded a liability for ...