Why J.B. Hunt Transport Stock Is Sputtering Today
Higher costs and weaker demand led to an earnings miss at J.B. Hunt Transport Services (NASDAQ: JBHT), and the company doesn't see things improving quickly. Investors are moving to the exit lane, sending J.B. Hunt shares down 9% as of 11:30 ET.
J.B. Hunt is a trucking and logistics company focused on hauling intermodal containers (the rectangular boxes designed to transition seamlessly from ship to rail to truck). The company earned $1.22 per share on revenue of $2.94 billion in the first quarter, far short of the $1.52 in EPS on sales of $3.12 billion that Wall Street had expected.
Revenue fell 9% year over year and operating income was down 30%, a reflection of weakening demand and the impact of higher costs. J.B. Hunt said that operating income as a percentage of revenue decreased due to higher wages and benefits, equipment maintenance expenses, and soaring insurance rates.
Source Fool.com
