JB Hunt - Forecasting Strength?

JBHT out with earnings today.

Q3 EPS of $0.43 misses by $0.01. Revenue of $986M (+18.2%) in-line. Shares -1.1% AH.

Shares down, a penny light - not good, right?

What I found interesting in the release:

Though freight volumes backed off from the torrid pace we saw in June, demand remained steady across all segments.  In Intermodal, we continued to see record numbers of loads and double digit increases compared to prior periods despite the fact that, unlike most of the intermodal industry, we were growing last year, making the comparables more difficult for us.  September 30th was an all-time high in load count for a single day in Intermodal and we expect to surpass one million loads for the first time later this year.

“Load volume in our DCS segment, which we believe is a strong indicator of current customer demand and the general direction of the freight economy, continues to point toward steady business activity.  Contract pricing, reflecting improvement in supply and demand balance, in both Intermodal and Truck, rose sequentially from this year’s second quarter and from the same period a year ago.  Assuming demand remains near current levels, we expect to see freight rates continue to rebound from the unsustainable lows we saw during the recession.

JBI load count was up 17% in the current quarter compared to a year ago.  Demand was generally strong across the country as our eastern network grew 26% and transcontinental business grew 13% over the same period 2009.


Considering that stuff has to be moved before it can be either made or sold, increases in freight (rail, truck, intermodal) is a good indicator of future activity.  Does this mean everything is peachy?  Absolutely not, but puzzle pieces come in all shapes and sizes, we are just trying to put them together.