J.B. Hunt misses estimates on weak freight demand and better upkeep bills



(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)

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