J.B. Hunt reported fourth-quarter earnings of $1.90 per share, outpacing the consensus forecast of $1.80. This result reflects a 24% improvement over the prior year’s EPS of $1.53 and marks the company’s fourth consecutive quarter of positive earnings surprises. The strong bottom-line performance was driven by disciplined cost control and productivity gains across key operating units.

Total revenue for the period fell 2% year-over-year to $3.10 billion, in line with Wall Street estimates. The Intermodal division, the company’s largest segment, saw a 3% drop in revenue to $1.55 billion as shippers moderated rail spending. Final Mile Services experienced a steeper 10% decline, generating $206 million, as e-commerce clients tightened delivery schedules and negotiated lower rates.

Operating income rose 19% to $246.5 million versus the same quarter last year, driven by lower fuel costs, headcount reductions and network optimization initiatives. However, the effective tax rate climbed to 22.4% from 19.0% in the year-ago period, resulting in a higher tax expense despite the uplift in operating profit.

Dedicated Contract Services posted modest revenue growth of 1% to $843 million, reflecting stable contract renewals and modest new account wins. Truckload revenue improved 10% to $200 million, but operating income in that division declined 2% as driver wage inflation and asset utilization pressures offset higher rates.