- Fourth Quarter 2017 Revenue Range: $1.9 – 2.0 billion
- Fourth Quarter 2017 Operating Income Range: $145 – 155 million
- Fourth Quarter 2017 EPS Range: $0.77 – $0.82
LOWELL, Ark.--(BUSINESS WIRE)-- J.B. Hunt Transport Services, Inc., (NASDAQ:JBHT) announced expectations for the fourth quarter 2017 net earnings in the range of $85.0 million to $90.0 million, or diluted earnings per share in the range of $0.77 to $0.82 vs. fourth quarter 2016 net earnings of $117.6 million, or $1.05 per diluted share. Fourth quarter 2017 results are expected to include charges for a reserve on a cash advance for the purchase of new trailing equipment from a manufacturer that will not meet delivery for $20.3 million pretax, or $0.11 per diluted share, and an increase in reserves for certain insurance and claims for $18.6 million pretax, or $0.10 per diluted share.
Enacted on December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) changes existing United States tax law and includes numerous provisions that may affect our business. The Act introduces changes that impact our corporate tax rate, business-related exclusions, deductions and credits. We are in the process of understanding the widespread applicability of the Act to our financial statements but believe it will primarily affect our balance sheet accounts creating an additional one-time benefit for 2017. Accordingly, the above net earnings and per diluted share estimates were computed using an effective tax rate of 37.6% for the fourth quarter as the impacts of the tax legislation will likely have a minimal effect on operating income for the quarter.
Total operating revenue for the current quarter is expected to be in the range of $1.9 billion to $2.0 billion, compared with $1.72 billion for the fourth quarter 2016.
Operating income for the current quarter is expected to be in the range of $145 million to $155 million, which reflects the charges for the cash advance reserve and insurance reserves previously mentioned. Operating income in the fourth quarter 2016, totaled $194 million.
We expect to release actual fourth quarter and full year 2017 earnings on January 18, 2018.
This press release may contain forward-looking statements, which are based on information currently available. Actual results may differ materially from those currently anticipated due to a number of factors, including, but not limited to, those discussed in Item 1A of our Annual Report filed on Form 10-K for the year ended December 31, 2016. We assume no obligation to update any forward-looking statement to the extent we become aware that it will not be achieved for any reason. This press release and additional information will be available immediately to interested parties on our web site, www.jbhunt.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171228005047/en/
J.B. Hunt Transport Services, Inc.
David G. Mee, 479-820-8363
Executive Vice President, Finance/Administration and Chief Financial Officer
Source: J.B. Hunt Transport Services, Inc.