J.B. Hunt shares lower-than-expected profit decline and sales as freight prices fall

Takeaways

J.B. Hunt missed its earnings and sales estimates due to lower prices for freight services.
The company's Intermodal and Truckload segments saw lower revenues. revenue per load.
J.B. Hunt said his customers' inventory clearance was reducing shipping demand.

Shares of J.B. Hunt Transport Services (JBHT) fell more than 8% on Wednesday after the shipping giant reported worse-than-expected results due to falling freight prices.

J.B. Hunt reported that third-quarter fiscal 2023 earnings fell 30.4% from last year to $187.4 million, or $1.80 per share. Revenue fell 17.6% to 3.16 billion reais. Both were lower than expected.

The company said revenue per load at its Intermodal – truck and rail shipments – and Truckload divisions fell 14% and 22%, respectively. It also saw a 38% drop in volume in its Integrated Capacity Solutions group, a 20% drop in stops for its Final Mile Services division and a 1% drop in average revenue-generating truck revenue. for its Dedicated Contract Services segment.

Fuel surcharge revenue fell 30% to $472 million and represented 14.9% of total revenue. A year ago, it was 17.6%.

The company blamed the results Disappointing on customer inventory clearance which reduced shipping demand, but indicated that this process began to moderate in June.

Despite that of Wednesday After a sell-off, J.B. Hunt shares remained in positive territory for the year.