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(Reuters) - U.S. trucking firm J.B. Hunt Transport Services posted a 7.6% fall in first-quarter profit on Tuesday, as continued weakness in its truckload and brokerage businesses offset gains in the intermodal segment, while higher costs also weighed on its bottom line.
Shares of the company were down 6.4% in extended trading.
A slower-than-expected rate of capacity exiting the market has further dampened what experts call a "freight recession," which started after the pandemic, with little visibility into when the market might turn as President Donald Trump's tariffs could further impact demand, hampering volumes for carriers.
J.B. Hunt's intermodal volumes increased 8% from last year, propelling its largest segment, JBI, which involves shipping goods using two or more means of transportation, to post revenue of $1.47 billion for the quarter.
The company posted net earnings of $117.7 million, or $1.17 per share, in the quarter ended March 31, compared to $127.5 million, or $1.22 per share, a year ago.
It attributed the fall in profit to a decline in revenues from its dedicated contract services unit along with increased equipment and maintenance costs.
The Arkansas-based company posted quarterly revenue of $2.92 billion, marginally higher than analysts' average estimate of $2.90 billion, according to data compiled by LSEG.
(Reporting by Abhinav Parmar and Utkarsh Shetti in Bengaluru; Editing by Alan Barona)