NEW YORK (TheStreet) -- Shares of J.B. Hunt Transport Services (JBHT - Get Report) are sliding 3.76% to $82.06 on heavy trading volume Monday afternoon after the trucking and logistics company reported weaker-than-expected earnings for the 2016 second quarter.
Before today's market open, the Lowell, AR-based company posted earnings of 92 cents per diluted share, below analysts' estimates of 96 cents per share.
Revenue rose 5% to $1.62 billion year-over-year. Analysts were expecting $1.615 billion.
"The benefits of volume growth, increases in revenue producing truck counts and higher equipment utilization, were substantially offset by increases in rail purchased transportation costs, higher driver wages and recruiting costs and increased equipment ownership costs," the company said in a statement.
Additionally, Hunt now sees revenue increasing 7% in 2016 compared to its prior view for a rise of 9% to 12%. The company also expects operating income to grow 5% vs. previous guidance for an increase of 8% to 11%, the Wall Street Journal noted.
About 1.68 million of the company's shares changed hands so far today compared to its average 30-day volume of 734,784 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and growth in earnings per share.
The team believes its strengths outweigh the fact that the company shows low profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: JBHT