J.B. Hunt misses estimates on weak freight demand and better upkeep bills
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(Reuters) – J.B. Hunt Transport Providers Inc reported lower-than-expected quarterly earnings on Monday, damage by weak delivery demand, excessive driver wages and upkeep bills.
Shares of trucking operator fell 2.43% to $172.36 in prolonged buying and selling.
Logistics companies are battling extra supply capability as demand from e-commerce firms declines from pandemic highs.
Volumes at J.B. Hunt’s intermodal enterprise fell 5%.
The U.S. trucking firms have additionally been pressured to pay greater wages for drivers as they cope with a scarcity within the business.
Main gamers within the world transportation business, which was ravaged by provide chain disruptions and port logjams final yr, have begun to pursue high-margin prospects to assist their companies keep afloat in a quickly altering financial system.
Supply giants resembling FedEx and United Parcel Service have instituted value management measures to higher equip themselves in an unpredictable financial system.
Lowell, Arkansas-based J.B. Hunt managed to chop its working bills by roughly 6% to $2.95 billion within the first quarter.
The corporate reported a revenue of $1.89 per share for the quarter by means of March, in contrast with analysts’ common estimate of $2 per share, as per Refinitiv information.
Its income additionally declined 7.4% to $3.23 billion, in need of analysts’ common estimate of $3.40 billion.
(Reporting by Priyamvada C and Pratyush Thakur in Bengaluru; Enhancing by Shweta Agarwal)
