J.B. Hunt (JBHT) Stock Down Almost 3% on Q2 Earnings Miss

Core Insights - J.B. Hunt's quarterly earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and represented a 27% decline year over year [1] - Total operating revenues of $2.93 billion fell short of the Zacks Consensus Estimate of $3.03 billion, marking a 7% year-over-year decrease [12] - The company reported an operating loss of $13.3 million, an increase from the previous quarter's loss of $4.4 million, attributed to decreased gross profit and higher costs [5] Financial Performance - Operating income for the reported quarter decreased 24% year over year to $205.7 million due to lower revenues and increased expenses [2] - Net interest expenses grew 38% year over year, driven by higher effective interest rates and a consolidated debt balance [13] - Cash and cash equivalents at the end of the quarter were $53.50 million, down from $64.18 million in the prior quarter, while long-term debt increased to $1.48 billion from $1.36 billion [27] Segment Performance - The Dedicated Contract Services segment saw revenues decline 4% year over year to $851 million, impacted by a 1% drop in average trucks and a 3% decrease in productivity [4] - The Intermodal division generated revenues of $1.41 billion, down 5% year over year due to a 1% decrease in volume and a 5% decrease in gross revenue per load [14] - Integrated Capacity Solutions revenues decreased 21% year over year to $270 million, with segmental volumes down 25% [16] Market Reaction - Shares of J.B. Hunt declined 2.93% in after-market trading following the disappointing second-quarter results [11] - Year-to-date, J.B. Hunt's shares have decreased by 14.9%, compared to a 3.6% loss in the industry [20] Shareholder Actions - In the second quarter of 2024, J.B. Hunt repurchased approximately 1,225,000 shares for $203 million, with about $163 million remaining under its share repurchase authorization [19]