We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
J.B. Hunt (JBHT) Q2 Earnings: Disappointment in Store?
Read MoreHide Full Article
J.B. Hunt Transport Services Inc. (JBHT - Free Report) is set to release second-quarter 2016 results, before the market opens on Jul 18.
In the last quarter, the company recorded a positive 3.53% earnings surprise. Let’s see how things are shaping up for this announcement.
Factors at Play this Quarter
Lower fuel surcharge continue to impact the company’s annual core price increase, thus affecting revenues. Additionally, U.S. truckload volumes have been on a decline which does not bode well for the company. J.B. Hunt faces stiff competition from truckload carriers such as YRC Worldwide Inc. , Old Dominion Freight Line (ODFL - Free Report) and Conway Inc. Thus, earnings could be impacted by unfavorable macroeconomic developments and intensifying competition.
However, the company’s strong product portfolio is encouraging. The company expects 2016 revenues to grow in the band of 9% to 12% compared to 2015 levels. Its intermodal and Dedicated Contracts Segment (“DCS”) should perform well going forward.
Earnings Whispers
Our proven model does not conclusively show that J.B. Hunt is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Most Accurate estimate stands at 96 cents while the Zacks Consensus Estimate is poised at 97 cents. Hence, the ESP is -1.03%.
Zacks Rank: J.B. Hunt carries a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions as is the case with J.B. Hunt.
Here is a transportation stock you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
United Parcel Services (UPS - Free Report) with an Earnings ESP of +2.11% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
J.B. Hunt (JBHT) Q2 Earnings: Disappointment in Store?
J.B. Hunt Transport Services Inc. (JBHT - Free Report) is set to release second-quarter 2016 results, before the market opens on Jul 18.
In the last quarter, the company recorded a positive 3.53% earnings surprise. Let’s see how things are shaping up for this announcement.
Factors at Play this Quarter
Lower fuel surcharge continue to impact the company’s annual core price increase, thus affecting revenues. Additionally, U.S. truckload volumes have been on a decline which does not bode well for the company. J.B. Hunt faces stiff competition from truckload carriers such as YRC Worldwide Inc. , Old Dominion Freight Line (ODFL - Free Report) and Conway Inc. Thus, earnings could be impacted by unfavorable macroeconomic developments and intensifying competition.
However, the company’s strong product portfolio is encouraging. The company expects 2016 revenues to grow in the band of 9% to 12% compared to 2015 levels. Its intermodal and Dedicated Contracts Segment (“DCS”) should perform well going forward.
Earnings Whispers
Our proven model does not conclusively show that J.B. Hunt is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Most Accurate estimate stands at 96 cents while the Zacks Consensus Estimate is poised at 97 cents. Hence, the ESP is -1.03%.
Zacks Rank: J.B. Hunt carries a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions as is the case with J.B. Hunt.
HUNT (JB) TRANS Price and EPS Surprise
HUNT (JB) TRANS Price and EPS Surprise | HUNT (JB) TRANS Quote
Stocks to Consider
Here is a transportation stock you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
United Parcel Services (UPS - Free Report) with an Earnings ESP of +2.11% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>