(Reuters) – U.S. trucking company JB Hunt (NASDAQ:) Transport Services missed Wall Street forecasts for its first-quarter results on Tuesday due to lower revenues in its largest segment and pricing pressure in its brokerage business.
The company’s shares fell more than 5% in extended trading.
JB Hunt’s largest segment, intermodal, which involves shipping goods through two or more modes of transportation, saw revenue decline 9% for the quarter ended March 31, while volume for that segment remained flat compared with the same period in 2023.
Freight companies in the United States are seeing lower freight volumes as persistent inflation keeps consumer spending on new goods low.
“Overall demand for our domestic intermodal services was weaker than expected in the quarter, due in part to competition from off-road trucks on the eastern network,” the company said.
JB Hunt’s Integrated Capacity Solutions (ICS) unit, which provides freight brokerage services, reported an operating loss of $17.5 million in the first quarter, compared with a loss of $5.4 million a year earlier due to lower contractual and transaction rates and changes in customer mix. cargo mix.
Excess market capacity is causing spot rates to gradually decline, hurting profits for companies like ICS, which connects shippers with truckers.
The Arkansas-based company’s net income fell 35% in the quarter to $1.22 per share. Analysts on average estimated earnings per share of $1.52 per share, according to LSEG.
The company’s overall operating income fell 9% to $2.94 billion, also missing analysts’ estimates of $3.12 billion.