J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) Q1 2023 Earnings Call Transcript

We look at the performance and all of the businesses that do require more capital, that’s why I say I think we’re in a better position than we’ve ever been in.Shelley talked about responding to the market signals, the market changes. Right now, we are doing that. And I think there is a very, very quick response at this level with this team to address challenges that are weren’t expected necessarily. But with the most important part of that conversation being about the long-term, we are a long-term company. Our addressable market is somewhere in the high hundreds of billions of dollars. And so, when we say we’re a growth company, that’s because as industry leaders, we have fractional percentages of the markets that we serve even in the number one spot.

So we like where we’re at. We have a strong view. We will make tweaks. Remember on CapEx, when you think about that, a good portion of our CapEx is replacement. We had plenty of trouble through the pandemic in getting equipment replaced that we needed. I think we will look at timing on other elements of CapEx expansion and growth. And with DCS, that model is a pull system anyway. So it only triggers being our heaviest demand when it is asked to or after a deal is closed. So I think that that all goes back to the idea of probably more cautious about the rest of this year than we were three months ago to that question based on the facts and data that we’re seeing. And we will respond, but we know this. Last point, it’s not a question of yes, this is coming back.

It’s just a question of when and what position will we be in when our customers start ringing our phone again in ways that they have in the past. Thank you for calling in today.Operator That concludes the J.B. Hunt 1Q 2023 earnings conference call. Thank you all for your participation. You may now disconnect your line.