India, July 17 -- J.B. Hunt Transport Services Inc. (JBHT) reported that its net earnings for second quarter 2017 declined to $97.9 million or $0.88 per share from $105 million or $0.92 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.92 per share. Analysts' estimates typically exclude special items.
Both earnings per share and revenue for the quarter missed analysts' expectations.
Operating income for the quarter totaled $164 million versus $176 million for the second quarter 2016. The benefits of volume growth and increases in revenue producing truck counts were substantially offset by lower customer rates, increases in rail and over the road purchased transportation costs, start-up costs associated with new DCS contracts, higher driver wages and recruiting costs, increased insurance and claims costs, increased equipment and facility maintenance costs and increased technology costs.
Interest expense in the quarter increased due to higher interest rates compared to the same period last year.
Total operating revenue for the quarter was $1.73 billion, compared with $1.62 billion for the second quarter 2016, an increase of 7%. Analysts expected revenue of $1.74 billion for the quarter.
The latest-quarter total operating revenue, excluding fuel surcharges, increased 5% vs. the comparable quarter 2016. Load growth of 5% in Intermodal (JBI), a 5% increase in revenue producing trucks in Dedicated Contract Services (DCS) and a 20% increase in volume in Integrated Capacity Solutions (ICS) contributed to the increase in consolidated revenue compared to prior year.
The company posted revised full year 2017 Financial Expectation. JBI segment expects revenue to be in the range of $3.9 billion - $4.1 billion.
In ICS segment, annual revenue is expected to be $0.95 billion - $1.10 billion.
The company projects annual revenue of $1.60 billion - $1.65 billion in DCS segment.
JBT segment annual revenue is expected to be in the range of $0.37 billion - $0.39 billion.
For comments and feedback: contact firstname.lastname@example.org