(RTTNews) -  Monday, surface transportation company J.B. Hunt Transport Services, Inc., (JBHT: News ), reported a decline in profit for the third quarter, reflecting a decline in total operating revenues as fuel surcharge revenues dropped sharply. Earnings per share and revenues, however, came in above analyst expectations.

The Lowell, Arkansas-based company's third quarter net income declined to $39.96 million or $0.31 per share from $60.30 million $0.47 per share a year earlier. On average, twenty analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the quarter. Analysts' estimates typically exclude special items.

J.B. Hunt's total operating revenues for the third quarter declined to $833.75 million from $996.43 million for the prior year period. Revenues were hurt mainly as fuel surcharge revenues plunged to $93.05 million from $225.78 million in the year-ago period. Excluding fuel surcharge revenues, operating revenues were $740.70 million, down from $770.66 million a year earlier. Revenues, however, exceeded Street estimate of $804.68 million.

"While current quarter volumes did show seasonal improvements across our four business segments, pricing continues to be challenging following the implementation of various bids and proposals from customers submitted earlier in the year in both the Intermodal and Truck segments. We are not pleased with the resulting pricing in these two segments," said Kirk Thompson, president and chief executive officer.

Total operating expenses for the quarter dropped to $762.79 million from $890.17 million last year, as fuel and fuel tax expenses declined to $72.51 million from $143.03 million a year earlier. Rents and purchased transportation expenses were $365.06 million, down from $400.64 million in the prior year period.
The company's largest segment, intermodal segment operating income for the quarter was down 33% to $49.58 million from $73.97 million, while segment revenue were down 14% to $455.95 million from $531.50 million a year earlier. The decline in revenues and operating income was due to lower revenue per load of $1,906 compared with $2,412 in the same quarter last year. Loads rose to 239.27 thousand from 220.35 thousand a year-ago.

Dedicated contract services segment operating income dropped 30% to $18.87 million from $26.84 million last year and segment revenue declined by 19% to $196.78 million from $243.89 million a year-ago. Loads dropped to 313.74 thousand from 335.85 thousand for the same period last year.

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