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J.B. Hunt Surges After Q3 Beat as Cost Cuts Boost Margins

Structural cost savings lifted margins, sharpening near-term profitability.

Overview

  • The company posted Q3 EPS of $1.76 on revenue of $3.05 billion, topping estimates as operating income rose 8% year over year.
  • Shares jumped roughly 12% after hours and premarket, then finished Thursday up about 22% as investors repriced the outlook.
  • Management said about $20 million of costs were removed in the quarter and that total annual savings could ultimately exceed $100 million.
  • Intermodal revenue fell 2% but the unit’s operating ratio improved to 91.8% on better network balance and fewer empty moves, while dedicated margins also improved.
  • Final Mile revenue declined 5% with operating income down 42%, truckload and brokerage delivered mixed results, analysts lifted price targets, and the company disclosed $230 million in Q3 buybacks with $107 million authorization remaining.