J.B. Hunt Earnings: Intermodal Headwinds Remain Stubborn

Narrow-moat J.B. Hunt Transport Services' third-quarter consolidated top line fell 15% year over year excluding fuel, similar to the second-quarter decline, with sales down in all segments. Intermodal revenue was short of our expected run rate, as we anticipated a slight sequential uptick in retail sector inventory restocking that didn't occur. That said, we were expecting overall year-over-year declines to persist across Hunt's intermodal, trucking, and brokerage operations, driven by tough comparisons and incremental demand and pricing normalization.