JB Hunt shares fall after third-quarter margin compression offsets revenue beat

  • JB Hunt reported third-quarter adjusted earnings of $1.82 per share and revenue of $3.68 billion.
  • Operating income rose 2% to $247.1 million, while operating margin declined to 6.7% from 7.9%.
  • Higher transportation, insurance and personnel costs offset stronger Intermodal and revenue-per-load performance.

JB Hunt Transport Services Inc. (NASDAQ:JBHT) reported third-quarter adjusted earnings of $1.82 per share and revenue of $3.68 billion, above the $3.57 billion to $3.58 billion analyst estimates cited in the reports. Shares fell 4.2% in after-hours trading in one report and more than 2% in another as operating income rose only 2% to $247.1 million and operating margin narrowed to 6.7% from 7.9% a year earlier. Higher purchased transportation costs, insurance and medical claims, and professional driver personnel expenses weighed on profitability. Revenue excluding fuel surcharges rose 13%, supported by stronger Intermodal loads and higher revenue per load in Integrated Capacity Solutions and Truckload, while Final Mile Services activity declined. The company also repurchased about 704,000 shares for $174 million and reduced total debt to $1.12 billion.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.