J.B. Hunt Transport Services Inc. is keeping its capital spending in check and plans to resume stock buybacks amid a cautious view of the U.S. freight market despite beating quarterly earnings expectations. J.B. Hunt on Thursday reported a 9% annual drop in its second-quarter net profit, to $121.7 million, as volumes declined in the intermodal truck-rail segment, its largest segment. PREVIEWThe company expects $600 million to $625 million in capital spending this year, up about 4% from the range it disclosed in April and about 11% lower than initially forecast in January. Tight trucking capacity is also driving up rates on the spot market, weighing on J.B. Hunt’s freight brokerage business. “To the extent that spot rates continue to rise, we think capacity will begin to creep back into the market,” Ms. Landry wrote.

Source: Wall Street Journal July 17, 2020 21:11 UTC