J.B. Hunt Misses Revenue Estimates on Freight Slump

(Luke Sharrett/Bloomberg)

J.B. Hunt Transport Services Inc. shares fell in late trading after the truck carrier reported quarterly revenue that missed estimates, underscoring continued weakness in freight demand.

Third-quarter sales of $3.10 billion trailed the $3.11 billion average of analyst estimates compiled by Bloomberg, weighed down by a decline in its intermodal division, its largest unit, as well as revenue drops in its integrated capacity solutions — J.B. Hunt’s freight brokerage arm — and final-mile services units. 

J.B. Hunt handled fewer longhaul, coast-to-coast shipments during the quarter, with intermodal volumes shifting toward shorter hauls in the eastern U.S. Transcontinental loads fell 6% from a year earlier, while volumes in the company’s Eastern network rose 5%, reflecting continued demand for shorter routes and highway-to-rail conversions.

The results highlight ongoing challenges for the trucking industry, which has struggled post-pandemic with soft shipping demand and too much trucking availability. The Lowell, Ark.–based company is seen as an earnings-season bellwether, ahead of reports later this quarter from competitors such as Schneider and Knight-Swift Transportation Holdings Inc.

While the quarter wasn’t bad, “the degree of upside wasn’t nearly as impressive” as in the prior period, Vital Knowledge, run by Adam Crisafulli, wrote in a post-earnings note, pointing to a lack of growth in freight volumes.

Cost cuts helped limit the downside, with J.B. Hunt’s earnings per share of $1.90 beating expectations of $1.81. The carrier last year announced plans to reduce $100 million in expenses, with most of the cost savings to be realized this year. 

J.B. Hunt ranks No. 3 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, No. 1 on the intermodal sector list and No. 2 in truckload/dedicated. The company also ranks No. 4 on the logistics TT100 and No. 2 among freight brokerages.