J.B. Hunt Transport Services Inc. on Monday reported a first-quarter earnings decline of 18% resulting from reduced revenue in four of its five business segments plus higher wages and other costs.
The Lowell, Ark.-based trucking and logistics giant reported earnings of $198 million, or $1.89 a share for the three-month period ended March 31 compared with $243 million, or $2.29 a share, in the same quarter a year ago. Analysts polled by FactSet had been expecting earnings of $2.03 a share.
Total revenue fell 7% to $3.23 billion from $3.49 billion last year. Analysts had expected sales of $3.42 billion.
The revenue decline, the company said, was driven by declines in volumes of 25% in the company’s integrated capacity solutions segment (ICS), 5% in intermodal (JBI), 17% in final mile services, and a 17% drop in revenue per load in truckload (JBT). Those decreases were partially offset by a 13% revenue increase in dedicated contract services, which was primarily driven by a 7% uptick in average revenue producing trucks.
J.B. Hunt’s operating income declined 17% to $277.5 million versus $334.5 million for the first quarter of 2022, the company reported. The drop was in part because of lower volumes and pressure on customer rate and cost recovery efforts across ICS, JBI and JBT. The trucking firm also cited increases in professional driver and non-driver wages, insurance-related costs, and equipment-related and maintenance expenses as factors in the income decline.
Net interest expenses for the quarter were also up 18% from a year ago, due to higher rates, the company said. And a net loss of $6 million from equipment sales compared to a net gain of $17 million last year contributed further to the company’s earnings downswing.