J.B. Hunt Earnings Fall Amid Weak Demand
October 17 2016 - 09:20AM
Dow Jones News
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 imani.moise@wsj.com
(END) Dow Jones Newswires
October 17, 2016 09:05 ET (13:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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