J.B. Hunt down as Q1 report reveals weak earnings, BMO expects near-term headwinds

Shares of J.B. Hunt Transport Services (NASDAQ: JBHT) fell 5% in Wednesday's premarket after the transportation and logistics company missed analysts' estimates for fiscal Q1 earnings and revenue.

JBHT posted Q1 earnings per share (EPS) of $1.22, which fell short of consensus estimates of $1.52. The company's revenue for the quarter was $2.94 billion, also missing the consensus projection of $3.12 billion.

J.B. Hunt's EBIT for the quarter was $194.4 million with a margin of 6.6%, which was 13.7% lower than the expected $225.1 million and a 7.2% margin.

“JBHT first quarter results fell below expectations amid a challenging environment and as JBHT carries $100m (annualized) in additional costs as it looks to position itself for an eventual recovery,” BMO Capital Markets analysts said.

“While there is potential for Q1/24 to be the trough, visibility is limited, and near-term headwinds could persist. We expect shares to come under pressure,” they added.

By Vahid Karaahmetovic

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