Trucking companies were rattled Wednesday after J.B. Hunt Transport Services reported lower-than-expected first quarter earnings and sales. Down nearly 4%, trucking is Wednesday's worst performing industry group on the market, led by J.B. Hunt stock.
"The current environment we are in has remained persistently challenging and for longer than we had predicted," J.B. Hunt Chief Executive John Roberts said on the company's earnings call.
J.B. Hunt reported its sixth-straight quarter of declining earnings and fifth consecutive period of dropping sales. First-quarter earnings fell 35% on a 9% sales decline. Operating income fell, due to lower volumes as well as increases in equipment costs, insurance and claims and bad debt expense.
Its fiscal second-quarter earnings and sales are expected to drop once again. Further, fiscal 2024 profits are expected to fall 3%, according to MarketSurge.
J.B. Hunt provides transportation, logistics and delivery services through trucking, rail, air and ocean freight. A handful of analysts lowered their price target on the stock following the negative report.
Trucking Companies: J.B. Hunt Stock Plunges
J.B. Hunt stock has gapped down further below its 200-day moving average in heavy volume triggering a sell signal. Shares have lost around 15% this year so far. Its relative strength line has been trending down since February before Wednesday's steep drop.
In sympathy, Old Dominion Freight Line also plummeted below its 50-day line in heavy trading. Old Dominion has also shown flat to declining earnings and sales over the last four quarters.
Saia stock dived further below its 50-day line and fell below the bottom of a newly formed flat base. The trucking company had also struggled with declining earnings until its most recent quarter.
TFI International also cratered below its 50-day line in heavy action, triggering a sell signal.
ArcBest tumbled below its 50-day line after holding near 52-week highs.
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