J B Hunt Transport Services Inc (NASDAQ:JBHT) stock rose 2.58% (As on October 16, 11:21:57 AM UTC-4, Source: Google Finance) after the company reported better-than-expected third quarter results,  helped by improving volumes in its largest segment, intermodal. The intermodal segment, also known as JBI, which involves shipping goods via two or more means of transport, saw a rise due to higher imports and better rail services. It also helped the company partially offset a decline in prices. The company reported a 5% year-over-year increase in intermodal volumes, propelling its JBI segment to post a revenue of $1.56 billion. Dedicated Contract Services (DCS) revenue decreased 5% during the current quarter over the same period 2023 driven by a 3% decline in average trucks combined with a 3% decline in productivity (revenue per truck per week). Integrated Capacity Solutions (ICS) revenue declined 7% during the current quarter versus the third quarter 2023.

Moreover, Operating income for the current quarter decreased 7% to $224.1 million versus $241.7 million for the third quarter 2023. Operating income decreased primarily due to lower revenue in all segments excluding JBI, and higher personnel-related, insurance and claims, and equipment-related expense compared to third quarter 2023. On a consolidated basis, operating income as a percentage of gross revenue decreased year-over-year as a result of the same aforementioned expense items, partially offset by lower rail and truck purchased transportation costs as a percentage of gross revenue.

JBHT in the third quarter of FY 24 has reported the adjusted earnings per share of $1.49, beating the analysts’ estimates for the adjusted earnings per share of $1.39. The company had reported the adjusted revenue decline of 3 percent to $3.07 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $3.02 billion. The decline in revenue was primarily driven by a 5% and 6% decrease in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decline in load volume of 10% and 6% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services  (DCS), respectively, and 6% fewer stops in Final Mile Services (FMS). These items were partially offset by JBI load growth of 5%, which included growth in both the transcontinental and eastern networks, and a 3% increase in revenue per load in ICS. Current quarter total operating revenue, excluding fuel surcharge revenue, decreased less than 1% versus the comparable quarter 2023.