LSTR - J.B. Hunt drops after missing second-quarter earnings EPS revenue estimates

2023-07-18 16:47:39 ET

J.B. Hunt Transport Services ( NASDAQ: JBHT ) shares dropped nearly 1% post-market after the company missed expectations.

The Arkansas-based transportation notched $1.81 in earnings per share, missing by $0.11 , and compared to $1.89 from the first quarter. Meanwhile, an 18% year-over-year decrease in revenue to $3.13B also came up short of the $3.28B consensus estimate. That would have been a 15% drop from a year earlier.

Goldman Sachs noted that JBHT’s share price has been a laggard compared to other light transportation names so far this year. JBHT is up 8% in 2023 so far, compared to RXO ( RXO ) up 20%, Landstar System ( LSTR ) rising 22% and Expeditors International of Washington ( EXPD ) up 17%, respectively.

But “asset light names should outperform later in the cycle,” Goldman Sachs analysts led by Jordan Alliger wrote in a note, setting a price target on JBHT at $202. The firm has a Buy rating on the company.

The company missed revenue expectations in both the intermodal and dedicated segments.

For the previous quarter, the company missed expectations on volume and revenue declines and increases in wages, maintenance and equipment costs.

Operating income for Q1 fell 17% to $277.5M amid “pressure on customer rate and cost recovery efforts.”

Over the last 3 months, EPS estimates have seen zero upward revisions and 19 downward. Revenue estimates have also seen zero upward revisions with 13 downward. The company’s EPS for the previous two quarters missed estimates.

More on J.B. Hunt:

• J.B. Hunt Transport Services Q2 2023 Earnings Preview
• J.B. Hunt Transport Services: Technological Integration Creating Operational Efficiencies
• J.B. Hunt Transport Services: Fantastic Business That Is Returning Quickly
• J.B. Hunt Transport stock is called a freight recovery play by JPMorgan

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