Why J.B. Hunt Transport Shares Are Diving Today
J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) shares are trading lower after the company reported first-quarter 2024 results.
Operating revenue fell 9% Y/Y to $2.94 billion, missing the consensus of $3.12 billion.
The decline in revenue was due to a 9% decrease in segment gross revenue per load in both Intermodal (JBI) and Truckload (JBT), 22% fewer loads in Integrated Capacity Solutions (ICS), and a modest decline in average trucks and productivity in Dedicated Contract Services (DCS).
Total operating revenue, excluding fuel surcharge revenue, decreased by around 7% Y/Y in the quarter.
Operating income declined 30% Y/Y to $194.4 million due to lower volumes and yield pressure in JBI, ICS, and JBT, higher equipment, insurance, claims, and bad debt expenses.
EPS of $1.22 missed the consensus of $1.52.
As of March 31, 2024, the company had cash and cash equivalents of $64 million.
In the first quarter of 2024, the company repurchased shares worth $25 million. As of March 31, 2024, J.B. Hunt had around $366 million remaining under its share repurchase authorization.
Investors can gain exposure to the stock via IShares Trust IShares U.S. Transportation ETF (BATS:IYT) and VictoryShares Nasdaq Next 50 ETF (NASDAQ:QQQN).
Price Action: JBHT shares are down 6.01% at $172.00 premarket on the last check Wednesday.
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