J.B. Hunt's Q1 2024 Financial Decline

J.B. Hunt Transport Services, Inc. has reported its first-quarter 2024 financial results, and the figures show a significant impact on the company's performance compared to the same period in 2023. The company's revenue for the first quarter of 2024 stood at $2.94 billion, reflecting a 9% decrease from the first quarter of 2023, when the revenue was $3.23 billion.

Operating income for the first quarter of 2024 was $194.4 million, down by 30% from the operating income of $277.5 million in the first quarter of 2023. This decrease was primarily due to lower volumes and yield pressure in various segments, as well as increases in equipment, insurance and claims, and bad debt expense.

The company's earnings per share (EPS) also experienced a decline, with first-quarter 2024 EPS at $1.22 compared to $1.89 in the first quarter of 2023, marking a 35% decrease.

Breaking down the performance by segment, the Intermodal segment (JBI) saw a 9% decrease in revenue to $1.40 billion, and operating income dropped by 40% to $101.9 million. Dedicated Contract Services (DCS) revenue declined 2% to $860 million, with operating income down by 9% to $93.6 million. Integrated Capacity Solutions (ICS) reported a 26% decrease in revenue to $285 million and an operating loss of $(17.5) million. Final Mile Services (FMS) was a bright spot with a 2% increase in revenue to $229 million and a significant 128% increase in operating income to $15.1 million. Truckload (JBT) experienced a 13% revenue decrease to $178 million, and operating income plummeted by 75% to $1.2 million.

The company's net interest expense increased by approximately 6% from the first quarter of 2023 due to higher effective interest rates and consolidated debt balance. The effective income tax rate increased to 28.7% in the first quarter of 2024 compared to 24.7% in the first quarter of 2023, primarily due to discrete tax items.

Despite the challenging financial results, the company engaged in share repurchases, having purchased approximately 126,000 shares of its common stock for approximately $25 million in the first quarter of 2024, with approximately $366 million remaining under its share repurchase authorization. Actual shares outstanding at March 31, 2024, approximated 103.2 million.

Today the company's shares have moved -1.1% to a price of $182.99. For more information, read the company's full 8-K submission here.

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