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J.B. Hunt Transport Services beat first-quarter expectations on Wednesday after the market closed. Cost reduction initiatives allowed the multimodal transportation provider to again achieve operating income growth significantly ahead of revenue growth.

J.B. Hunt (NASDAQ: JBHT) reported first-quarter earnings per share of $1.49, 4 cents ahead of the consensus estimate and 32 cents higher year over year.

Consolidated revenue of $3.06 billion was 5% higher y/y, outpacing analysts’ expectations for revenue of $2.95 billion. Operating income increased 16% given cost takeouts and improved productivity.

Intermodal revenue increased 2% y/y to $1.51 billion as load count was up 3% and revenue per load was down 1% (down 2% excluding fuel surcharges). J.B. Hunt reported its highest-ever first-quarter volumes and said it achieved a record volume week in March.

Even with only a modest revenue increase the unit’s operating income jumped 21% y/y in the period. The operating ratio improved 120 basis points y/y to 92.4%. Prior cost cutting and better asset utilization drove the improvement.

Dedicated revenue increased 2% y/y to $841 million. The increase was entirely driven a similar increase in revenue per truck per week as average trucks in service were flat with the prior-year quarter. An 89.6% OR was 60 bps better y/y.

Operating losses widened in the brokerage unit as 3PLs across the industry were squeezed by higher purchased transportation costs (spot rates). A $4.7 million operating loss was $2 million worse y/y and marked a 13th-straight quarterly loss.

J.B. Hunt will host a call at 5 p.m. EDT on Wednesday to discuss first-quarter results.

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