WRAPUP 1-JB Hunt, Werner Q3 top market, see demand stabilizing

* JB Hunt Q3 shr $0.31 vs est $0.28

* Werner Q3 shr $0.26 vs est $0.20

* Cos say demand stabilizing, but recovery slow

* Werner shares up 4 pct, JB Hunt down slightly

Oct 19 (Reuters) - Truckload carriers J.B. Hunt Transport Services Inc (JBHT.O) and Werner Enterprises (WERN.O) posted better-than-expected quarterly results, and said they were seeing signs of stabilization in demand.

However, the companies, two of the largest truckload carriers in the United States, do not anticipate an early recovery and said the freight market continued to be challenging and pricing very competitive.

"We have noted some recent signs of firming demand, however, the freight economy remains weak and we are not anticipating a rapid improvement," JB Hunt CEO Kirk Thompson said in a statement.

Werner said though volumes showed some seasonal improvement as the quarter progressed, it continued to face a challenging environment during the quarter.

JB Hunt posted a 34 percent drop in third-quarter profit at $40 million, or 31 cents per share. Revenue fell 16 percent to $834 million.

Analysts on average had expected earnings of 28 cents a share, before special items, on revenue of $804.7 million, according to Thomson Reuters I/B/E/S.

JB Hunt, which also provides intermodal services, said pricing continues to be challenging following implementation of various bids and proposals from customers submitted earlier in the year in both its intermodal and truck segments.

"Until freight rates start to return to a reasonable level, margins are unlikely to improve dramatically," JB Hunt's Thompson said.

Omaha, Nebraska-based Werner said pricing remains extremely competitive, mainly due to high level of customer bid programs that occurred in the first half of the year.

It said shipper destocking of inventory that happened earlier in the year has slowed and stabilized inventory levels.

Werner's third-quarter net income fell to $19.0 million, or 26 cents a share, from $22.4 million, or 31 cents a share, a year ago. Revenue fell 27 percent to $429.3 million.

Analysts on average had expected earnings of 20 cents a share, before items, on revenue of $427.9 million.