First look: J.B. Hunt’s Q4 beats consensus

Core Insights - J.B. Hunt Transport Services exceeded fourth-quarter earnings expectations, with consolidated revenue down 2% year-over-year but operating income up 11% [1][2] - The company implemented a $100-million cost reduction program, which is expected to have a structural impact on expenses [2] - The company reported revenue of $3.1 billion, slightly below the consensus estimate of $3.12 billion, with earnings per share of $1.90, exceeding both year-over-year and consensus expectations [3] Financial Performance - Consolidated revenue decreased by 2% year-over-year, while operating income increased by 11%, or 19% when excluding one-time prior-year charges [1] - Intermodal revenue fell 3% year-over-year to $1.55 billion, attributed to modest declines in load counts and revenue per load [3] - Dedicated revenue saw a slight increase year-over-year to $843 million, with an 88.3% operating ratio, which is 90 basis points better than the previous year [5] Operational Metrics - The brokerage unit reported a 12th consecutive quarterly loss, with a $3.3 million operating loss, despite a 6% increase in revenue per load [5] - The intermodal unit achieved a 91.2% operating ratio, which is 140 basis points better year-over-year and 60 basis points better than the third quarter [3] - The company’s management emphasized strong execution and operational excellence, which they believe sets them apart from competitors [2]