JBHT - JB Hunt stock slides as volume declines drive earnings miss

2023-04-17 16:29:46 ET

JB Hunt Transportation ( NASDAQ: JBHT ) shares slipped after the bell on Monday after the company missed earnings expectations for the first quarter.

The Arkansas-based transportation notched $1.89 in earnings per share, short of the $2.02 expected. Meanwhile, a 7% year over year decrease in revenue to $3.23B also came up short of the $3.42B consensus estimate .

“The decline in revenue was primarily driven by declines in volume of 25% in Integrated Capacity Solutions, 5% in Intermodal ( JBI ) and 17% in Final Mile Services; and a 17% decline in revenue per load in Truckload ( JBT ),” the earnings release explained. "Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%, primarily driven by a 7% increase in average revenue producing trucks.”

Operating income for the Q1 fell 17% to $277.5M amid “pressure on customer rate and cost recovery efforts.” Additionally, rises in wages, maintenance and equipment costs, as well as insurance payments hit the bottom line. Decreases in rail and truck purchased transportation costs due to lower activity helped mitigate costs to a degree, the company said.

Shares of JB Hunt ( JBHT ) dipped 2.07% after the print .

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