J.B. Hunt misses profit estimates as freight volumes remain weak
Jan 18 (Reuters) - U.S. trucking firm J.B. Hunt transport Services missed Wall Street estimates for fourth-quarter profit on Thursday, hit by depressing freight demand as consumer spending remained weakened due to inflation.
The Arkansas-based company has now missed profit estimates for five consecutive quarters, according to LSEG data
Post-pandemic changes in U.S. consumer spending, shifting from goods to services, combined with global shipping delays have left freight companies grappling with reduced transport volumes, leading to a 'freight recession.'
J.B. Hunt's biggest segment, Intermodal, which involves shipping goods via two or more modes of transportation, saw a 28% decrease in operating income in the reported quarter.
Excess capacity in an already low-volume environment makes the situation more difficult for carriers across the country, while higher diesel prices in the quarter further dented their profits.
J.B. Hunt's net earnings fell 23.7% to $1.47 per share for the quarter ended Dec. 30, from a year ago. Analysts on average had estimated earnings per share of $1.75, according to LSEG data.
Revenue fell 9% to $3.30 billion, but was ahead of estimates of $3.28 billion.
Shares of the company rose 2% in extended trade. (Reporting by Abhinav Parmar in Bengaluru; Editing by Shailesh Kuber)
