Transportation

J.B. Hunt Muddles Along

Trucks
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J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) reported fiscal first quarter 2013 results after markets closed today. For the quarter, the trucking and transport company posted diluted earnings per share (EPS) of $0.61 on revenues of $1.29 billion. In the same period a year ago, the company reported EPS of $0.57 on sales of $1.17 billion. First-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.64 EPS and $1.29 billion in sales.

Revenue in the company’s Intermodal segment rose 15% to $796 million, due mainly to volume growth and higher revenue per load. Operating income rose 22% year-over-year in the segment.

The odd thing about Hunt’s growth is that it seems to have hit a wall at around $0.67 a share after a big jump of $0.10 a share in the second quarter of last year. The intermodal business represents nearly 75% of the company’s revenues. The trucking segment has watched revenues shrink and posted just $1.1 million in operating income in the first quarter.

The company did not offer any further guidance in its published release. The consensus estimate for the second quarter calls for EPS of $0.77 on revenue of $1.4 billion. For the 2013 fiscal year, EPS is reckoned at $3.05 on revenue of $5.65 billion. Unless Hunt gets a big boost somewhere, those numbers look awfully optimistic.

One might think that with the boom in oil and fuel transportation that has hit U.S. railroads that trucks might also be picking up some of that business. Hunt does not say if that is true for the company, but there are no signs of it if its true.

Hunt’s shares are down about 3.6% in after-hours trading at $71.58 in a 52-week range is $50.56 to $75.73. Thomson Reuters had a consensus analyst price target of around $72.50 before today’s report.

 

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