J.B. Hunt Transport Services saw an increase in earnings despite a slight revenue decline in the third quarter. The company’s $100-million cost reduction program paid off, with operating income up 8% and earnings per share exceeding analysts’ expectations by 30 cents.

Shares of J.B. Hunt surged 12% in after-hours trading after the earnings report. The company identified over 100 expense lines for improvement, cutting $20 million in costs in the third quarter with potential annual savings exceeding $100 million over time.

J.B. Hunt reported that it won’t be forced to move Eastern intermodal traffic to CSX if the Union Pacific-Norfolk Southern merger is approved. The company plans to continue using both Eastern railroads and engage with all rail providers to find optimal solutions for customers.

Intermodal revenue for J.B. Hunt dipped 2% year over year to $1.52 billion, with a mix shift to the East affecting yields. Despite a decline in transcontinental loads, Eastern loads increased by 6% in the third quarter.

J.B. Hunt’s dedicated unit revenue was up 2% year over year to $864 million, with average trucks in service slightly lower. Net customer attrition ceased in July, and the company aims for net fleet growth between 800 and 1,000 trucks annually.

The brokerage unit of J.B. Hunt reported an operating loss of $752,000 in the third quarter, marking 11 consecutive losses but the smallest loss in the cycle. Revenue was down slightly year over year, with labor utilization improving.

J.B. Hunt’s stock saw a 12.4% increase in after-hours trading after reporting better-than-expected earnings. Despite analysts cutting estimates due to tepid demand, the company remains optimistic about its operations and growth potential.

Read more at Yahoo Finance: J.B. Hunt’s belt tightening yields big Q3 beat