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JB Hunt Dips on Q3 EPS Miss; Trucking Sees Profit By Tiernan Ray
Shares of trucking/logistics firm JB Hunt Transport Services (JBHT) are down 11 cents, or a third of a percent, at $35.40 after the company this afternoon reported Q3 revenue rose 18% to $986 million, matching estimates, but missed by a penny on the bottom line, reporting 43 cents a share in profit.
JB Hunt saw “steady” volume of freight, though down from the “torrid” pace in June, CEO Kirk Thompson said. While the company’s “intermodal” and “contract services” businesses each generated double-digit revenue and operating earnings growth, the trucking part of the business — which is much smaller than the rest at just 12.6% of total sales — saw revenue rise just 4%. Operating income in trucking of $6.5 million, morever, improved from a year-earlier $400,000 loss.
Trucking rates improved 9% from the prior-year period and 3% from Q2, the company said. The average distance of freight hauled rose, demand improved relative to supply as the company pared its truck fleet, and a review of underperforming accounts helped to trim losses, the company said. The company expects freight rates to continue to rebound from unsustainable lows going forward, said Thompson.
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