J.B. Hunt Transport Services, Inc. has reported its U.S. GAAP (United States Generally Accepted Accounting Principles) financial results for the second quarter of 2024. The company's total operating revenue for the quarter was $2.93 billion, down 7% from the same period in 2023. The operating income for the quarter was $205.7 million, a decrease of 24% from the second quarter of 2023. Earnings per share (EPS) for the quarter were reported at $1.32, down 27% from $1.81 in the same period last year.
The Intermodal (JBI) segment saw a 5% decrease in revenue for the second quarter of 2024, with operating income down 31% compared to the same period in 2023. The segment experienced a 1% decrease in volume and a 5% decrease in gross revenue per load. Operating income was impacted by various factors including increases in professional driver and non-driver wages and benefits, ownership costs of underutilized equipment, higher equipment and maintenance expenses, and higher insurance and claims expense.
The Dedicated Contract Services (DCS) segment reported a 4% decrease in revenue for the second quarter of 2024, with operating income down 15% compared to the same period in 2023. The decrease in operating income was attributed to lower revenue, higher insurance and claims, equipment-related and bad debt expenses, and higher new account start-up costs.
Integrated Capacity Solutions (ICS) segment revenue declined by 21% in the current quarter compared to the second quarter of 2023. The segment reported an operating loss of $13.3 million, compared to an operating loss of $4.4 million in the second quarter of 2023. The increase in operating loss was primarily driven by a decrease in gross profit, higher insurance and claims costs, and integration and transition costs related to the purchase of the brokerage assets of BNSF Logistics.
Final Mile Services (FMS) segment revenue increased by 5% compared to the same period in 2023, with operating income up 33% from the prior-year period. This increase was primarily driven by multiple new contracts implemented over the past year.
The Truckload (JBT) segment reported a 12% decrease in revenue for the second quarter of 2024, with operating income down 7% compared to the same period in 2023. The decrease in operating income was primarily driven by the decline in revenue.
In terms of financial position, J.B. Hunt Transport Services, Inc. had approximately $1.48 billion outstanding on various debt instruments at June 30, 2024, compared to $1.45 billion at June 30, 2023. The company's net capital expenditures for the six months ended June 30, 2024, approximated $409 million, compared to $854 million for the same period in 2023. At June 30, 2024, the company had cash and cash equivalents of approximately $54 million.
Additionally, in the second quarter of 2024, the company purchased approximately 1,225,000 shares of common stock for approximately $203 million. At June 30, 2024, the company had approximately $163 million remaining under its share repurchase authorization, with actual shares outstanding approximating 102.0 million.
Investors will have the opportunity to listen to the company's conference call to discuss the quarterly earnings, which will be held today from 4:00–5:00 p.m. CDT. As a result of these announcements, the company's shares have moved 3.8% on the market, and are now trading at a price of $176.0. For the full picture, make sure to review J.B. Hunt Transport Services's 8-K report.
