JBHT - J. B Hunt gains after powering past earnings estimates

J.B. Hunt Transport Services ( NASDAQ: JBHT ) traded higher in postmarket action on Tuesday after topping estimates on both lines of its Q3 earnings report.

The Arkansas-based transportation company reported total operating revenue increase 22% during the quarter to $3.14B. Operating revenue was up 12% compared to a year ago excluding the fuel surcharge revenue. The revenue growth was primarily driven by a 17% increase in Intermodal revenue per load, an 18% increase in average revenue producing trucks in Dedicated Contract Services, a 13% increase in Truckload volume, and an increase in Final Mile Services ( FMS ) revenue driven primarily by our recent acquisition - which were just partially offset by an 8% decrease in volume in Integrated Capacity Solutions.

Total freight transactions in the Marketplace for J.B. Hunt 360 increased 7% to $552M.

Operating income increased 32% Y/Y to $362.2M from $273.8M, primarily from customer rate and cost-recovery efforts and higher volume specific to the DCS, JBI, and JBT business units which offset higher rail and truck purchased transportation costs, increases in driver and employee retention costs, higher equipment-related and maintenance expense, and costs associated with inefficiencies in container utilization in JBI and the onboarding of newly awarded business in both DCS and FMS.

Shares of J.B Hunt ( JBHT ) rose 2.45% after the Q3 earnings report dropped.

Sector watch: Trucking and logistics peers could get a boost on Wednesday with JBHT's smooth calming some nerves. Read about Citi's recent warning on freight trends in Q4.

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