JBHT - J.B. Hunt's Long-Term Intermodal Growth Plan Weighs on Q1 Result | Benzinga
The multimodal provider reported first-quarter earnings per share of $1.22 Tuesday after the market closed, 31 cents light of the consensus estimate and 67 cents lower year over year (y/y). A higher tax rate presented a 7-cent headwind while higher interest expense was a 1-cent headwind.
Table: J.B. Hunt's key performance indicators – Consolidated
Intermodal revenue declined 9% y/y to $1.4 billion as revenue per load fell by a similar amount, with load counts flat with the prior year. Transcontinental loads were 5% higher y/y, largely due to a weaker comparison to the same period last year, while depressed truckload rates weighed on intermodal demand in the East, pushing volumes 7% lower.
Total intermodal traffic on the U.S. Class I railroads was 9% higher y/y in the quarter, according to the Association of American Railroads. J.B. Hunt's intermodal loads were down 2% y/y in January, up 3% in February and off 1% in March. The company noted price competition from both TL carriers and other intermodal providers. It pointed to a "disciplined approach" to pricing as an explanation for the loss in share.