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J.B. Hunt Earnings Miss Raises Concerns: Time for Investors to Reassess?
J.B. Hunt Transport Services (JBHT), which currently holds a Zacks Rank #5 (Strong Sell), is a major player in transportation and logistics, offering a wide range of shipping and supply chain solutions.
The company recently reported another earnings miss, a trend that has pressured its stock performance over the past few years.
With earnings estimates trending downward, investors might consider exploring other options within the sector.
Company Overview
Founded in 1961 and based in Lowell, Arkansas, J.B. Hunt Transport Services, Inc. provides various surface transportation and logistics services across the U.S. through five segments: Intermodal, Dedicated Contract Services, Integrated Capacity Solutions, Final Mile Services, and Truckload.
The company offers freight solutions via a fleet that includes owned and managed tractors, trailers, and independent contractor trucks. J.B. Hunt caters to various industries, providing services like dry-van, refrigerated, expedited, and flatbed freight, and operates a multimodal logistics marketplace.
As of now, J.B. Hunt has a market valuation of $17 billion with a Forward PE ratio of 25. It holds a Zacks Style Scores of “D” for Value while earning an “A” for Growth.
Q3 Earnings Update
For Q4, J.B. Hunt fell short of expectations, missing earnings per share (EPS) by 5.5%. Although the earnings exceeded last year’s EPS of $1.47 by 4.0%, this indicates a concerning trend of underachievement compared to analyst forecasts. Furthermore, the reported revenue of $3.15 billion was in line with expectations but reflected a 4.77% decline year-over-year, highlighting challenges in sustaining growth against a changing logistics environment.
J.B. Hunt has missed its earnings forecasts in eight of the last nine quarters, raising alarms about the company’s capacity to adapt to current economic conditions. Following the earnings report, shares dropped over 10% as investor confidence waned.
Overall, J.B. Hunt’s $157.65 million decline in revenue underscores the challenges the company faces. Weaker earnings indicate that tightening economic conditions will likely continue to hinder its profitability and growth moving forward.
J.B. Hunt Transport Services Faces Forecast Adjustments
Significant Cuts in Earnings Estimates After Recent Earnings Report
Estimates have dropped significantly across all time frames since the earnings report last week.
For the current quarter, forecasts decreased by 7% over the past 7 days, falling from $1.46 to $1.36.
Looking ahead to next quarter, estimates have also declined by 5%, down from $1.70 to $1.61.
For the full year, projections have been adjusted downward by 3%, now sitting at $7.01, down from $7.25.
Trends in Price and Consensus for J.B. Hunt Transport Services, Inc.
J.B. Hunt Transport Services, Inc. price-consensus-chart | J.B. Hunt Transport Services, Inc. Quote
Next year’s outlook aligns with a trend of downward revisions over the last 90 days. Estimates slipped by 3%, now at $8.52 from $8.76.
While many analysts keep their bullish ratings, price targets have been lowered:
Benchmark: Reiterates Buy, maintains price target of $195.
JP Morgan: Maintains Overweight, lowers price target to $200 (from $205).
Wells Fargo: Maintains Overweight, lowers price target to $190 (from $200).
BofA Securities: Maintains Buy, lowers price target to $189.
Technical Analysis
The recent decline is putting pressure on some technical support levels. The 200-day moving average is barely holding after the earnings announcement. If the $172 level is breached, the 2024 lows around $155 may come into play.
If bulls manage to close the earnings gap, it would signal a positive shift, yet until that happens, bears seem to dominate the market.
J.B. Hunt’s Stumbling Financials: A Forecast of Decline
J.B. Hunt Faces Tough Challenges Ahead
J.B. Hunt continues to encounter significant challenges, illustrated by consistent earnings misses and decreasing revenue. Analysts have lowered earnings estimates, signaling a difficult path moving forward.
Analysts’ Caution Amidst Ongoing Pressure
Although analysts still hold a bullish outlook, their revised price targets indicate a growing caution. The stock’s technical support is increasingly at risk as downward trends continue.
Alternative Recommendations for Investors
Bearish sentiment could linger until J.B. Hunt exhibits signs of recovery. For those seeking opportunities in the logistics sector, Knight-Swift Transportation (KNX) stands out as a better alternative. Currently, it holds a Zacks Rank #3 (Hold) following a 3% earnings beat and positive momentum in 2025.
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The views expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
