J.B. Hunt Earnings: Intermodal Backdrop Remains Challenged

Narrow-moat-rated J.B. Hunt’s top line fell 14% year over year (excluding fuel) as revenue declined in all segments. While revenue fell short of our expectations, the overall decline is not surprising given ongoing freight-demand normalization, including retail sector inventory destocking and soft U.S. import trends. Also, intermodal activity probably saw added pressure from shippers' concerns over west coast labor-related port disruption, which caused some imports to shift to the east coast.