What is driving J B Hunt Transport Services Inc (NASDAQ: JBHT) stock

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J B Hunt Transport Services Inc (NASDAQ: JBHT) stock rose over 4% in the after-hours of July 17th, 2020 (Source: Google finance) on decent second quarter of 2020 performance. The group cut its CapEx to be over $600 million to $625 million for 2020, against its original estimate of $700 million. They ended the quarter with over $275 million in cash or net debt of approximately $1 billion. The Covid Pandemic hurt its April monthly volumes by 6% and by 4% in May. However, the volume recovery in June by positive 5% boosted the stock sentiment. The amount of ICS operating revenue executed through the marketplace for J.B. Hunt 360°® surged to $229 million from $222 million in second quarter 2019.

J B Hunt Transport incurred $15 million in the first quarter for COVID-related items for over $25 million year-to-date. The overall operating revenue fell 5% to $2.15 billion, against $2.26 billion for the second quarter 2019, but excluding fuel surcharge revenue, the fall was only 0.5% against the prior corresponding period. Revenue performance, excluding fuel surcharge revenue, was primarily driven by a 2% volume decline in Intermodal (JBI), and 11% volume decline in Integrated Capacity Solutions (ICS), and 5% fewer stops in Final Miles. The group’s Operating income during the current quarter reached $175.2 million against the $193.1 million for the second quarter 2019.

As per the segmental performance, the Intermodal (JBI) Segment Revenue fell 7% yoy to $1.07 billion while Operating Income lost 14% yoy to $107.0 million. Dedicated Contract Services (DCS) Segment Revenue lost 1% yoy to $533 million while Operating Income fell 9% yoy to $83.1 million. Integrated Capacity Solutions (ICS) segment revenue fell 9% yoy to $304 million while reported an Operating Loss of $(13.1) million as compared to $(0.6) million in 2Q’19. Final Miles Services (FMS) segment revenue lost 2% yoy to $140 million while Operating Loss reached $(5.2) million as compared to $(15.8) million in 2Q’19. Truckload (JBT) segment revenue lost 9% yoy to $108.3 million while Operating Income took a huge hit falling 61% yoy to $3.5 million.

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