JBHT shares break above the $200-spyche level following earnings
Trucking giant JB Hunt Transport (JBHT) reported its earnings for the fourth quarter of 2023, showing a decline in earnings per share (EPS) and operating revenue compared to the same period last year.
JBHT reported diluted EPS of $1.47 for the fourth quarter of 2023, down from $1.92 in the same period last year. This represents a 23% decrease in EPS.
The company's operating revenue for the quarter was $3.30 billion, down 9% from $3.65 billion in the fourth quarter of 2022. The decline in operating revenue was driven by various factors, including volume declines in Integrated Capacity Solutions (-12%) and Truckload (-7%), yield pressure in Intermodal, Integrated Capacity Solutions, and Truckload, higher equipment-related costs, and increased insurance and claims expenses.
JBHT's operating income for the fourth quarter of 2023 was $203.3 million, down 28% from $281.9 million in the same period last year.
- Intermodal revenue decreased by 7.2% year-over-year to $1.62 billion. Intermodal loads increased by 6.5% to 535,987. Intermodal revenue per load declined by 13% to $3,029. Intermodal: Operating income for the Intermodal segment decreased by 28%.
- Dedicated Contract Services revenue increased by 0.4% year-over-year to $883.9 million. Dedicated Contract Services loads decreased by 7.3% to 1.02 million. Revenue per truck per week decreased by 0.4% to $5,284. Operating income for the Dedicated Contract Services segment increased by 8%.
- Integrated Capacity Solutions revenue decreased by 27% year-over-year to $363.7 million. ICS loads decreased by 24% to 203,928. Revenue per load declined by 3.7% to $1,783. Operating loss for the Integrated Capacity Solutions segment was $24.9 million, compared to an operating loss of $3.2 million in the fourth quarter of 2022
- Truck revenue declined by 29% year-over-year to $195.4 million. Truckload loads decreased by 22% to 102,755. JBHT reported a modest operating loss for the Truck segment, compared to operating income in the fourth quarter of 2022
Final Mile Services revenue decreased by 4.6% year-over-year to $243.2 million. Stops in Final Mile Services declined by 12%. Operating income for Final Mile Services decreased by 5%.
JBHT exhibited a strong bullish response to its earnings report, as evidenced by a large green candlestick and increased trading volume. The stock slipped to $187 initially, but ripped back higher and broke above the $200 psyche level. The stock closed significantly above both its 20-day and 50-day moving averages, signaling a short-term bullish trend. Although approaching the upper Bollinger Band®, which may suggest upcoming resistance, the widening bands indicate rising volatility and potential for the trend to continue. The RSI remains above 50, pointing to sustained bullish momentum without yet reaching overbought conditions, and the stock's performance today has reinforced support levels set by the key moving averages.
JB Hunt Transport Services Inc. operates in the trucking industry and has several peers, including XPO Logistics Inc. (XPO), Knight-Swift Transportation (KNX), and Werner Enterprises (WERN).
In conclusion, JB Hunt Transport Services Inc. reported a decline in earnings and operating revenue for the fourth quarter of 2023 compared to the same period last year. The decrease in revenue was primarily driven by volume declines and yield pressure in certain business segments. The company's operating income also decreased, except for the Dedicated Contract Services segment, which saw an increase. JBHT's performance should be monitored closely, considering its position within a competitive industry and the various factors influencing its revenue and income.