Transportation and logistics company J.B. Hunt (JBHT 113.46, -2.01, -1.7%) provided a fourth quarter earnings update this morning that creates an opening to come up short of analysts' average expectation.
Shares of JBHT are down 1.7% in pre-market action.
The company clarified that it expects diluted earnings per share in the range of $0.77 to $0.82. That guidance range incorporates an $0.11 per share charge for a reserve on a cash advance for the purchase of new trailing equipment from a manufacturer that the company will not meet, and a $0.10 per share charge for an increase in reserves for certain insurance and claims.
Excluding the charges, diluted earnings per share will be in the neighborhood of $0.98 to $1.03. That range brackets analysts' consensus estimate, yet the midpoint of the range is about a penny shy of analysts' average earnings expectation.
J.B. Hunt added that it expects operating revenue for the fourth quarter to be between $1.9 billion to $2.0 billion. The midpoint of that range would be slightly ahead of analysts' average expectation and up 13.4% from the same period a year ago.
The company will report its fourth quarter and full-year results on January 18.
Today's update has triggered a modest pullback in the stock, which was up 19% for the year as of Wednesday's close, leaving it slightly ahead of the Dow Jones transportation Average, which was up 18.3%.