Why J.B. Hunt Transport Shares Are Trading Higher Premarket Friday

Zinger Key Points
  • JB Hunt's Q4 FY23 revenue beats at $3.30B and disclosed 2% dividend hike.
  • Operating income down 28% to $203.3M, EPS misses at $1.47.

J.B. Hunt Transport Services Inc JBHT shares are trading higher after the company disclosed fourth quarter FY23 results and a dividend hike on Thursday after market close.

Revenue fell 9% Y/Y to $3.30 billion, beating the consensus of $3.28 billion. Operating revenue, excluding fuel surcharge revenue, decreased 6% Y/Y owing to a decline of 12% in Integrated Capacity Solutions (ICS) volume and 7% in Truckload (JBT) volume.

This was also impacted by a decrease of 10% and 13% in revenue per load excluding fuel surcharge revenue in Intermodal (JBI) and JBT segment, respectively, and a 12% decline in stops in Final Mile Services (FMS) segment.

Segment Change: On January 1, 2023, J.B. Hunt transferred most of JBT’s company-owned trucking operations to Dedicated Contract Services (DCS) and moved its less-than-truckload brokerage operations to FMS from ICS business.

Operating income fell 28% Y/Y to $203.3 million, and EPS of $1.47 missed the consensus of $1.75.

As of December 31, the company had debt of $1.58 billion and cash and cash equivalents of $53.3 million.

In the fourth quarter, J.B. Hunt purchased around 137,000 common shares for about $25 million and has about $392 million remaining under its share repurchase authorization as of December 31, 2023.

Dividend: The Board of Directors declared a regular quarterly dividend per share of $0.43, a 2% increase over the previous quarterly dividend. The dividend is payable on February 23, 2024, to stockholders of record as of February 9, 2024.

Also ReadRail Service Revival Boosts J.B. Hunt’s Growth Prospects: Analyst Sees Significant Volume Expansion

Price Action: JBHT shares are up 3.60% at $204.03 premarket on the last check Friday.

Photo via Wikimedia Commons

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