Why J.B. Hunt Transport Shares Are Diving Today

J.B. Hunt Transport Services, Inc. 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.

Also Read: J.B. Hunt Transport Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Investors can gain exposure to the stock via IShares Trust IShares U.S. Transportation ETF IYT and VictoryShares Nasdaq Next 50 ETF QQQN.

Price Action: JBHT shares are down 6.01% at $172.00 premarket on the last check Wednesday.

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