J.B. Hunt sees lower volumes, weaker demand; stock drops 6%

By Claudia Assis

Cost increases also contributed to lower bottom line, trucking company

Shares of J.B. Hunt Transport Services Inc. fell 6% in the extended session Tuesday after the transportation company reported drops in its quarterly profit and revenue after weaker demand.

The declines were a "combination of lower volumes and yield pressure" in several of its businesses, plus cost increases related to equipment, insurance and claims, the company said.

J.B. Hunt (JBHT) earned $127.5 million, or $1.22 a share, in the first quarter, compared with $197.8 million, or $1.89 a share, in the year-ago quarter.

Revenue dropped 9% to $2.94 billion, from $3.23 billion a year ago.

Analysts polled by FactSet expected GAAP earnings of $1.53 a share on revenue of $3.11 billion.

Revenue from both J.B. Hunt's intermodal and truckload segments fell by 9%, and the company saw 22% fewer loads in its freight brokerage and logistics division.

Those declines were only partially offset by 2% growth in its last-mile business, thanks to new contracts, the company said.

Shares of J.B. Hunt are down 8% so far this year, contrasting with gains of about 6% for the S&P 500 index SPX in the same period.

-Claudia Assis

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

04-16-24 1652ET

Copyright (c) 2024 Dow Jones & Company, Inc.