J.B. Hunt Earnings Fall Amid Weak Demand

J.B. Hunt Transport Services Inc. reported a dip in third-quarter earnings, as the freight trucking company faced lower customer rates and weak demand.

The trucking industry has struggled for months as excess capacity has pressured pricing. Additionally, the Arkansas-based transportation company said bottom-line growth was weighed down by increased driver wages and recruitment costs.

Over all for the quarter ended Sept. 30, J.B. Hunt reported a profit of $109.4 million, or 97 cents a share, down from $115.1 million, or 99 cents a share, a year earlier. Revenue rose 6.6% to $1.69 billion.

Analysts polled by Thomson Reuters had forecast earnings of $1.02 per share on $1.68 billion in revenue.

J.B. Hunt said intermodal revenue, its largest segment, rose 2% to $970 million. In that segment, the number of total loads grew 7%, though revenue per load slipped 4.2%.

The dedicated contract services unit reported a 6% increase in revenue to $394 million, helped by fewer unseated trucks and more streamlined supply chains. Truck revenue remained flat at $97 million.

In the quarter ended in June, J.B. Hunt cut its sales guidance for the year to 7% growth from a prior range of 9% to 12% growth.

Shares were inactive premarket. Shares have dipped 6.2% over the past three months.

Write to Imani Moise at [e-mail]

(END) Dow Jones Newswires

October 17, 2016 09:05 ET (13:05 GMT)

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