Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Earnings Watch: J.B. Hunt Third Quarter Profit Slips

Profits for multi-modal freight transportation provider J.B. Hunt Transport Services fell a little more than 8% in the third quarter of the year despite increased revenue, with increased driver recruiting and retention costs part of the reason.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
October 16, 2017
Earnings Watch: J.B. Hunt Third Quarter Profit Slips

 

3 min to read


Profits for multi-modal freight transportation provider J.B. Hunt Transport Services fell a little more than 8% in the third quarter of the year despite increased revenue, with increased driver recruiting and retention costs part of the reason.

The Arkansas-based company reported net earnings of $100.4 million, or 91 cents per share, compared to $109.4 million a year earlier, or 97 cents per share. The per share performance in the most recent quarter was 5 cents less than analysts were expecting.

Ad Loading...

Total operating revenue for the third quarter was $1.84 billion, compared with $1.69 billion for the third quarter 2016.

Operating income for the current quarter totaled $165 million compared to $183 million for the third quarter 2016, primarily due to increases in driver wages and recruiting costs, increased rail purchase transportation rates, higher insurance and claims costs, increased legal and consulting costs, higher equipment maintenance costs and acquisition and integration costs incurred by its purchase of Special Logistics Dedicated (SLD) LLC that closed during the quarter.

The company’s intermodal segment saw revenue increase 8% during the quarter to $1.05 billion, while operating income declined 7% to $109.1 million despite a 6% increase in overall freight volume.

Ad Loading...

The network disruption caused from hurricanes Harvey, Irma and Maria limited the company’s ability to handle approximately 5,500 loads in the period, according to J.B. Hunt.

The period ended with approximately 87,000 units of trailing capacity and 5,500 power units assigned to the dray fleet.

J.B. Hunt's dedicated segment reported $438 million in revenue, up 11% from a year earlier, as operating income was $42.9 million, an 18% decline.

Productivity, measured as revenue per truck per week, increased by approximately 2% compared to the same time in 2016.

Increased revenue from better integration of assets between customer accounts and customer rate increases was partially offset by lower productivity at new contracts implemented during the current quarter, according to the company.

Ad Loading...

A net additional 1,024 revenue-producing trucks, 621 net additions sequentially from second quarter 2017 including 328 acquired in the SLD purchase, were in the fleet by the end of the quarter. Approximately 63% of these additions represent private fleet conversions versus traditional dedicated capacity services, J.B Hunt said.

The company’s brokerage operation, known as Integrated Capacity Solutions (ICS), reported $269 million in revenue, a 16% increase, while operating income fell 14% to $7.3 million.

Revenue per load increased 17% from increased spot market activity while load volumes decreased 1% compared to the third quarter 2016.

The segment’s gross profit margin was flat at 12.8% compared to the prior year, as continued compression of gross margins in contractual business offset improvements in spot market gross margins, according to the company. Also, higher year-over-year technology development costs and a higher number of branches open less than two years more than offset the increased revenue compared to a year ago.

J.B. Hunt's truck segment reported a 5% decline in revenue, totaling $93 million while operating income increased 12% to $5.7 million.

Ad Loading...

Revenue excluding fuel surcharge decreased 6%, primarily from a 7% decrease in load count from third quarter 2016, according to the company. Revenue per load increased approximately 1% due to a 4% increase in rates per loaded mile offset by a 3% decrease in length of haul compared to a year ago.

It also reported that comparable contractual customer rates were flat compared to the same period in 2016.

At the end of the period, the truck segment operated 2,040 tractors compared to 2,183 a year ago.

According to the company, operating income in the truck segment moved higher due to favorable changes from higher rates per loaded mile, lower insurance and lower claims costs. These were partially offset by increased driver wages and independent contractor costs per mile, a decrease in fleet size, lower tractor utilization from an increase in unseated trucks, and higher equipment maintenance costs compared to third quarter 2016.


More Fleet Management

Lance Evans, Director of Safety at K&B Transportation.

Inside Modern Fleet Safety: AI, Cameras & Speed Control at K&B Transportation

How a former commercial vehicle enforcement officer turned director of safety at K&B Transportation is embracing real-world safety technology.

Read More →
TEN disaster prep.
Fleet ManagementMay 1, 2026

How Fleets Can Avoid Equipment Blind Spots in Disaster Response

When the unexpected happens, how you react to, and deal with operational blind spots is critical. Here’s how to keep you recovery on track, when nothing is normal.

Read More →
Illustration of cybersecurity images with "The Cyber Stop" text
Fleet Managementby Ben WilkensApril 30, 2026

AI Security Risks for Trucking Fleets: What to Know About Deepfakes and Agentic AI

As fleets adopt artificial intelligence for routing, maintenance, and load matching, new security risks are emerging. Learn where the vulnerabilities are and how to put the right controls in place.

Read More →
Ad Loading...
Mobile tablet showing Motus screen against highway background with Motus logo

FMCSA’s Motus System Is Coming. What Fleets Need to Know Now

The long-awaited registration system promises a single portal — and tighter fraud controls.

Read More →
CargoNet 2026 Qi report.
Fleet Managementby News/Media ReleaseApril 24, 2026

Cargo Theft Incidents Fall in Q1, but Organized Crime and Impersonation Drive New Risks

CargoNet reports fewer supply chain crime events to start 2026. But losses hold steady as organized crime shifts tactics toward impersonation schemes and high-value goods.

Read More →
Graphic with light bulbs, HDT Truck Fleet Innovators logo, and the word Nominations
Fleet ManagementApril 24, 2026

Nominations Open for HDT Truck Fleet Innovators 2026

Heavy Duty Trucking is searching for forward-looking leaders at trucking fleets as nominations for HDT’s Truck Fleet Innovators 2026. Deadline is May 15.

Read More →
Ad Loading...
Illustration with trojan horse and lock with inside of cargo container in background
Fleet Managementby News/Media ReleaseApril 23, 2026

New Trojan Driver Cargo Theft Scam Bypasses Carrier Vetting Systems

Cargo theft rings plant operatives as drivers inside legitimate, fully vetted carriers, then execute coordinated thefts that look like a traditional straight theft from the outside.

Read More →
ATA Truck Tonnage Index March 2026.
Fleet Managementby News/Media ReleaseApril 22, 2026

March Truck Tonnage Posts Strongest Annual Gain Since 2022

A modest sequential increase capped the strongest quarterly performance in years, signaling continued freight momentum in early 2026.

Read More →
Toll road.
Fleet Managementby Jack RobertsApril 22, 2026

Ohio Turnpike Targets $5.2 Million in Unpaid Tolls from Trucking Firms

More than 300 carriers across 26 states have been sent to collections as the Ohio Turnpike cracks down on toll evasion and delinquent payments.

Read More →
Ad Loading...
Illustration with ATRI logo and square blocks spelling out "research"
Fleet Managementby Deborah LockridgeApril 20, 2026

'Beyond Compliance,' Regulations, Driver Coaching on ATRI’s 2026 Research List

The American Transportation Research Institute will examine driver coaching, regulatory impacts — including the "Beyond Compliance" concept —and weather disruptions that shape trucking operations.

Read More →