(Reuters) – U.S. trucking firm J.B. Hunt Transport Services Inc missed Wall Street estimates for quarterly profit on Tuesday, hit by declining freight volumes as high inflation dented consumer spending.
Shares of the company fell about 1% at $187 after the bell.
Trucking and logistic firms, in the last few quarters, have struggled with weak shipping demand, high driver wages and maintenance expenses that have been a drag on their margins.
The e-commerce sector has particularly been hard hit from the pandemic highs as consumers return to their normal shopping patterns.
As a result, major players grapple with excess delivery capacity as demand wanes forcing firms like FedEx to embark on cost-cutting initiatives to protect profits and remain competitive in an unpredictable economy.
On Tuesday, J.B. Hunt reported a profit of $1.81 per share in the quarter ended June 30, missing analysts’ average estimate of $1.92 per share, as per Refinitiv data.
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Its revenues fell 18% to $3.13 billion, compared with estimates of $3.31 billion.
(Reporting by Priyamvada C in Bengaluru; Editing by Shailesh Kuber)