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The Lowell, Arkansas-based company's third quarter net income declined to $39.96 million or $0.31 per share from $60.30 million $0.47 per share a year earlier. On average, twenty analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the quarter. Analysts' estimates typically exclude special items.
J.B. Hunt's total operating revenues for the third quarter declined to $833.75 million from $996.43 million for the prior year period. Revenues were hurt mainly as fuel surcharge revenues plunged to $93.05 million from $225.78 million in the year-ago period. Excluding fuel surcharge revenues, operating revenues were $740.70 million, down from $770.66 million a year earlier. Revenues, however, exceeded Street estimate of $804.68 million.
"While current quarter volumes did show seasonal improvements across our four business segments, pricing continues to be challenging following the implementation of various bids and proposals from customers submitted earlier in the year in both the Intermodal and Truck segments. We are not pleased with the resulting pricing in these two segments," said Kirk Thompson, president and chief executive officer.
Total operating expenses for the quarter dropped to $762.79 million from $890.17 million last year, as fuel and fuel tax expenses declined to $72.51 million from $143.03 million a year earlier. Rents and purchased transportation expenses were $365.06 million, down from $400.64 million in the prior year period.
The company's largest segment, intermodal segment operating income for the quarter was down 33% to $49.58 million from $73.97 million, while segment revenue were down 14% to $455.95 million from $531.50 million a year earlier. The decline in revenues and operating income was due to lower revenue per load of $1,906 compared with $2,412 in the same quarter last year. Loads rose to 239.27 thousand from 220.35 thousand a year-ago.
Dedicated contract services segment operating income dropped 30% to $18.87 million from $26.84 million last year and segment revenue declined by 19% to $196.78 million from $243.89 million a year-ago. Loads dropped to 313.74 thousand from 335.85 thousand for the same period last year.
Truck segment slid to operating loss of $0.42 million compared to an operating profit of $2.45 million, with revenue at $119.20 million, down 30% from $170.64 million a year earlier. Loads dropped to 134.19 thousand from 149.88 thousand for the same period last year, while revenue per tractor per week declined to $3.21 thousand from $3.68 thousand a year-ago.
The company's smallest segment, Integrated capacity solutions' revenue was $67.65 million, up 16% from $58.53 million for the year-ago period mainly due to an increase in segment load to 61.59 thousand from 35.03 thousand a year earlier. Operating income dropped 1% to $3.04 million from $3.07 million in the year earlier period.
For the nine months, net earnings declined to $94.77 million or $0.73 per share from $147.32 million or $1.15 per share in the year earlier period. Total operating revenues were $2.33 billion, down from $2.85 billion a year-ago.
In July, the surface transport operator and SunEco Energy had announced a cooperative agreement, which may result in J.B. Hunt becoming a significant purchaser of biodiesel made from natural algae oil using SunEco Energy's proprietary technology.
Amongst peers, Werner Enterprises Inc. (WERN | Quote | Chart | News | PowerRating) reported a third quarter profit that declined to $18.99 million or $0.26 per share from $22.45 million or $0.31 per share a year ago. Revenues were down 27% to $429.27 million from $584.1 million in the prior-year quarter.
JBHT closed Monday's regular trading at $33.93, up $0.02 or 0.06%, on a volume of 2.25 million shares on the Nasdaq. In after hours, the stock further gained $0.03 or 0.08%, trading at $33.96.
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