J.B. Hunt Transport Services, Inc.
CEO : Mr. John N. Roberts III
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 4.4% YoY | -12.6% | -15.8% | 2023-01-18 |
Brad Hicks says,
ICS Top Line Revenue Performance
- ICS top line revenue decreased by 33% due to a decline in volume and revenue per load.
- Truckload volume was down by 21% in the quarter.
- The demand and volume were weaker in the fourth quarter, which is atypical.
Truckload Segment
- The demand for drop trailing capacity held up better relative to the overall market.
- Volume in JBT increased by 6% versus the prior year quarter.
- The blending of live and drop trailer capacity needs provides value to customers through leveraging the J.B. Hunt 360 platform.
J.B. Hunt 360 Platform
- The digital freight marketplace is a tool that drives value across the entire enterprise.
- The platform allows sourcing of third party intermodal dray capacity and provides backhaul freight opportunities in DCS.
- The platform provides almost unlimited capacity for and on-behalf of customers.
Future Growth and Focus
- The focus will remain on leveraging the investments and people, technology, and capacity to scale the business.
- The long runway of opportunity for future growth in 360box is supported by disciplined investments and solid execution, earning appropriate returns on capital.
- ICS and JBT are the highway solution for customers, representing the largest segment of the North American transportation market.
Shelley Simpson says,
Priorities for 2023 and Beyond
- The company remains committed to disciplined long-term investments in their people, technology, and capacity
- Delivering exceptional value to customers across the entire organization is a top priority
- Delivering long-term compounding returns for shareholders is also a priority
Market Dynamics and Customer Value
- A shift in market dynamics has been observed in the last two quarters
- Customers are putting more value on cost or how to save money and on service quality as capacity is less difficult to source
- The company believes their suite of services can and will present customers opportunities to save money with their industry-leading intermodal franchise, highly engineered dedicated capacity, scaled asset-light highway services offering, and one of the largest Final Mile Services in North America
Caution around Recent Demand Trends
- The company is approaching 2023 with caution around recent demand trends
- The focus is on controlling what they can control, managing the business with a focus on long-term growth while remaining nimble
Opportunities to Deliver Value to Customers
- The company is excited about the many ways and opportunities they have to deliver value to their customers
- They believe these opportunities will reveal themselves over the course of 2023 and well into their future
Financial Information
- No specific financial information or guidance was provided in this speech
Q & A sessions,
Port activity and inventory correction
- Port activity declined in Q4 2022 and impacted the company.
- An inventory correction is happening and is expected to continue through Q1 2023.
Bid season and growth
- Bid season for the company’s one-way part of the business occurs in the back half of the year, which drives capital planning.
- The company is confident in its bid season strategy, ability to win highway share converted to intermodal, and growth inside highway services.
- The company feels confident about dedicated and Final Mile segments.
Customer value and cost savings
- The company is focused on creating more customer value by helping customers with cost savings.
- This will be achieved through efficiency, mode conversion, building great fleets, differentiating the customers’ experience in the Final Mile segment, and leveraging J.B. Hunt 360 to bring a flexible cost and capacity solution.
Truckload and intermodal rates
- Downward rate pressure is expected on the highway side, and intermodal will continue to be advantageous for customers against truckload pricing.
Long-term investment and productivity gains
- The company is disciplined in its long-term investment around people, technology, and capacity, being fluid in those decisions and making sure to stay close with customers.
- The company expects further build-out of technologies in 2023 to help improve productivity and overall execution of the business.
- The platform enables the blending of historically separate businesses, resulting in better decisions, efficiencies, improved service, and ultimately a benefit to customers through low cost.
No bad stock 