J.B. Hunt shares are trading higher on Friday: here’s why

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Oct 15, 2021
  • J.B. Hunt reports market-beating results for its fiscal third quarter.
  • The firm says vaccine mandate could worsen supply chain constraints.
  • Shares of the transport company climbed by 10% on Friday.

Shares of J.B. Hunt Transport Services Inc (NASDAQ: JBHT) jumped 10% on Friday after the company reported market-beating results for its fiscal third quarter. The logistics firm acknowledged the pressure from rising wages but said growth in all businesses helped offset it.

Q3 financial performance

J.B. Hunt said its net income in the third quarter printed at $199.8 million that translates to $1.88 per share. In the comparable quarter of last year, its net income was capped at $125.5 million or $1.18 per share.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

The U.S. firm generated $3.14 billion in revenue that represents an annualised growth of 27.2%. According to FactSet, experts had forecast $1.78 of EPS on $3.02 billion in revenue.

Revenue from business segments

According to the earnings press release, J.B. Hunt noted a 17% year-over-year increase in Intermodal revenue. Revenue from dedicated contract services was up 20% and integrated capacity solutions revenue grew 55%.

Final mile services and truckload revenues came in 13% and 87% higher than last year, respectively.

Cash and share repurchase

J.B. Hunt valued its cash and equivalents at $530 million at the end of the third quarter. The Nasdaq-listed firm bought back 286,000 or roughly $50 million worth of its own shares in Q3.

Other notable figures included a 25% increase in operating expenses to $2.87 billion. Costs related to wages and benefits climbed by 19.8% in the recent quarter, and to rents and purchases transportation jumped 28.5%.

Also on Friday, J.B. Hunt’s chief commercial officer Shelley Simpson said Biden’s vaccine mandate could worsen the supply chain constraints.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker, eToro
10/10
67% of retail CFD accounts lose money