J.B. Hunt Transport Services Inc. on Tuesday reported strong fourth quarter earnings that increased from last year and exceeded analyst expectations.
The Lowell-based trucking and logistics company saw net income of $242.2 million, up 57% from the same quarter last year. Revenue was $3.5 billion, including fuel surcharges.
Results surpassed expectations at a time of great volatility in an industry plagued with labor and supply chain issues worsened by the coronavirus pandemic.
John Roberts, J.B. Hunt's president and chief executive officer, said in an afternoon investor call how proud he was of the company's resiliency and ability to adjust to customers' needs.
Roberts said "2021 was equally challenging" compared to the year prior.
Network congestion, delays, labor shortages, among other struggles, persist for the company, including inflationary pressures and issues related to the recent domestic surge in covid-19 cases.
Despite these hurdles, executives said in the call that J.B. Hunt was headed in the right direction and remains committed to investing in people and technologies and to providing value for shareholders.
The company raised base wages in the three months that ended Dec. 31, and approved nearly $10 million in Christmas bonuses for frontline workers. It is also working toward environmental, social and corporate governance goals.
"We believe we have important work to do and are committed to being transparent on our journey," Roberts said.
In the fourth quarter, J.B. Hunt reported income and revenue improvements across all business segments, except Dedicated Contract Services, which saw income decline 6% from a year ago because of higher labor costs.
J.B. Hunt generated earnings per share of $2.28, much higher than the expected $2.02 by Thomson Reuters and $2.03 by Stephens Inc.
Analyst Justin Long, of Stephens Inc., attributed the beat to strong results led by the intermodal segment, which had a 22% increase in revenue per load. J.B. Hunt's trucking, final mile and Integrated Capacity Solutions, or brokerage division, also outperformed.
Long said in a research brief that the company's Dedicated Contract Services segment missed expectations because of higher than expected start up costs, but should be a positive indicator for growth.
"Overall, this is a strong quarter and we expect margin driven upside to persist into 2022," he said.
For the year, J.B. Hunt's income and revenue improved compared to 2020.
Income grew 50% to $760.8 million. Revenue, including fuel surcharges, was $12.2 billion, a 26% improvement.
Capital expenditures were $877 million compared to $601 million in the year prior.
At the end of 2021, J.B. Hunt had debt outstanding of $1.3 billion, comparable to levels last year and in the previous quarter. It had $356 million in cash and equivalents.
Shares of J.B. Hunt fell less than 1%, or $1.58, to close Tuesday at $200.49 on the Nasdaq stock exchange.