Werner Enterprises Inc

J.B. Hunt Transport shares gained ~6% in the extended trading session on January 17 after the company reported its fourth-quarter results.

Werner Enterprises announced its third-quarter results on October 18 and beat analysts’ adjusted EPS estimate of $0.59 by 7.3%.

In the third quarter, the Intermodal segment’s revenues were $1.22 billion—up 16% compared to $1.05 billion in the third quarter of 2017.

A tax deduction for capital expenditures according to the new Tax Cuts and Jobs Act is a boon for the transportation industry.

The LTL (less-than-truckload) companies were nearly immune to the acute driver shortage faced by the US trucking industry until 2017.

In 2017, trucks hauled 10.8 billion tons of freight, representing 70.2% of all the domestic freight tonnage in the United States.

The robust second-quarter growth in the Customs Brokerage segment’s revenue was mainly driven by higher shipments.

For XPO, analysts estimate adjusted EPS of $0.98 in the second quarter. That’s a 63.3% growth rate YoY (year-over-year).

J.B. Hunt has a consensus 12-month target price of $133.80 per share, which implies a return potential of 10.1% over the next 52 weeks.

Schneider National’s operating margin grew 1.6% in the first quarter to 5.9% from 4.3% in the same quarter last year.

The US truckload segment is highly fragmented. The segment is expected to witness a lot of merger and acquisitions in upcoming quarters.

In January 2018, Genesee & Wyoming’s (GWR) combined carloads from all of the reporting segments fell 0.6%—compared to January 2017.

In 4Q17, Werner Enterprises (WERN) reported revenue of $567.4 million. The company beat Thomson Reuters–surveyed analysts’ consensus revenue estimate of $553.8 million by 2.4%.

Werner Enterprise earned an operating income of $45.1 million in 4Q17, a rise of 29% compared to its operating income of $35.0 million in 4Q16.

On January 29, 2018, Omaha-headquartered truckload carrier Werner Enterprises (WERN) announced its 4Q17 and 2017 results.

CSX’s (CSX) intermodal revenues shrank 1.3% to $471.0 million in 4Q17, down from $477.0 million in the fourth quarter of 2016.

Commercial vehicle drivers are required to install ELDs (electronic logging devices) in their vehicles by December 18, 2017.

Landstar System (LSTR) has the highest EV-to-forward-EBITDA multiple of 14.1x, followed by JB Hunt Transport Services (JBHT).

The ATA’s advanced seasonally adjusted index of for-hire trucks rose 3.3% to 147.6 in October 2017 on a sequential basis, from 142.9 in the previous month.

Looking at US truckload carriers’ forward dividend yields, we see that Ryder System (R) has the highest yield, followed by JB Hunt Transport Services (JBHT).

The average US on-highway diesel prices in 3Q17 have risen 20% compared to the same quarter last year.

Heartland Express (HTLD) reported a 22% growth in 3Q17 operating revenues to $182.1 million, from $149.3 million in the third quarter 2016.

Trucks currently haul ~70% of all merchandise shipped in the United States. Volumes are expected to reach ~10.7 billion tons in 2017 with $719 billion in revenues.

J.B. Hunt (JBHT) has a consensus rating of 2.19, indicating a “buy.” Of the 21 analysts covering the stock, six (28.6%) recommend a “strong buy.”

J.B. Hunt’s Integrated Capacity Solutions segment reported a 16% YoY (year-over-year) rise in 3Q17, reaching $269.0 million, compared with $233.0 million in 3Q16.

J.B. Hunt’s DCS segment’s revenues grew 11% to $438.0 million, up from $394.0 million in 3Q16.

Swift Transportation’s adjusted earnings fell 26.5% in 2Q17 to $0.25 per share from $0.34 per share in 2Q16.

Among the discussed companies, Heartland Express’s (HTLD) fuel cost as a percentage of operating expenses has risen 1.8% in 2Q17 to 19.7%.

The International Brotherhood of Teamsters, a major labor organization in the US, has been fighting against the implementation of legislation on autonomous trucks in the US.

Heartland Express’s operating margin grew 1.2% to 16.4% in 2Q17 compared to 15.2% in 2Q16.

J.B. Hunt Transport Services (JBHT) is expected to announce its 2Q17 earnings on the morning of July 17, 2017. Although JBHT’s earnings are under pressure, its revenue growth has been steady.

Trucking companies’ fuel surcharge revenues are directly tied to fuel prices. With the momentum in fuel prices, surcharge revenues are expected to pick up.

On April 10, 2017, the North American trucking sector woke up to the ringing of merger bells. Major truckload carriers Swift Transportation and Knight Transportation announced that they would combine.

the Intermodal segment remains J.B. Hunt Transport Services’ largest segment. In 3Q16, this segment contributed 57% of the company’s total operating revenue.

In the current weak freight regime, the extent of capital expenditure throws light on the growth prospects of these trucking carriers.

Heartland Express (HTLD) enjoys the highest operating margins of 15%–19% in our group under review.

In July 2013, the FMCSA of the US Department of Transportation extended safety regulations regarding truckload drivers’ hours of service.

The average operational truck count in Swift Transportation’s Refrigerated segment has dropped by 220 trucks, or by 11.8%, in 2Q16, as compared to 2Q15.

Memphis-based FedEx (FDX) bought Kinko’s printing chain for $2.4 billion in 2004 to compete with United Parcel Services’ (UPS) Mail Boxes.

J.B. Hunt (JBHT) predominantly uses debt for the purchase of revenue equipment. Usually, a truck is replaced in four years. However, the company didn’t replace trucks purchased from 1998–2000.

J.B. Hunt Transport’s (JBHT) Integrated Capacity Solutions segment provides conventional freight brokerage and transportation logistics solutions.

J.B. Hunt Transport (JBHT) has a network of roughly 89 cross-dock locations throughout the US to support the company’s final-mile, or last-mile, delivery services.

J.B. Hunt’s operating income grew to a strong $8.1 million, beating the $1 million loss in the same quarter last year.

Founded in 1988, Landstar System has grown to rank among the top trucking firms in the US.

For the full year, J.B. Hunt Transportation’s revenues grew 10% year-over-year to reach $6.2 billion. Earnings per share stood at $3.16 for fiscal 2014.

Old Dominion Freight Line (ODFL) has a strong pricing discipline and best-in-class service capabilities.

ODFL gets a technological edge from its series of wireless automated dock and yard management procedures for its 117 service centers across the US.

David Congdon is currently ODFL’s CEO and president. He has been named as one of the top three CEOs in the airfreight and surface transportation sector.

Earl and Lillian Congdon founded Old Dominion Freight Line (ODFL) in 1934 with a single truck in Richmond, Virginia.

Landstar’s strong performance has positioned the company to take full advantage of the recovering trucking market.

Landstar took a step forward by launching its own mobile application for its BCOs and carriers. This new app is available across various OS platforms.

On a year-to-date basis, Landstar’s revenues stood at $2,321 million, an 18% year-over-year increase from 2013.

Landstar’s success is highly dependent on high revenue-generating sales reps, as well as on the volume increases by BCOs and customers.

The insurance segment of Landstar System contributed about 1% to the company’s revenues for 2013, 2012, and 2011.

Landstar’s success lies in its ability to provide a complete logistics solution through various transportation modes and up-to-date technology.

Swift’s Central Refrigerated acquisition totaled of $225 million. Central Refrigerated is a privately-held company. It’s owned by Jerry Moyes.

Swift Transportation (SWFT) is one of the strongest players in the Intermodal segment. It has a large and strong network. Its network spreads across the US.

Swift’s Dedicated segment includes the long-term contracts with its customers. The contracts guarantee that it will have adequate capacity during peak periods.

Swift Transportation (SWFT) was founded in 1966. It was a small startup with just one truck. It was primarily operated by the owner.

In 2015, J.B. Hunt (JBHT) expects its revenues to grow steadily at ~9–12%. It also expects stronger operating income. JBHT expects to add $260 million worth of new fleet.

JBHT is also diversifying into newer industries to include various other products for delivery and installation. In the future, JBHT plans to keep its focus on customer service.

J.B. Hunt’s (JBHT) Integrated Capacity Solutions segment provides non-asset, asset-light, traditional freight brokerage and transportation logistics solutions to customers.

J.B. Hunt’s (JBHT) Full-Load, Dry-Van, or JBT, segment offers full-load, dry-van freight. It utilizes tractors operating over roads and highways.

Before we discuss J.B. Hunt’s (JBHT) operations, let’s take a look at important terminology in the trucking industry. LTL shipping is the transportation of relatively small freight.