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Bear of the Day: J.B. Hunt Transport Services (JBHT)

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J.B. Hunt Transport Services (JBHT) holds a Zacks Rank #5 (Strong Sell) and is a transportation and logistics company offering a diverse array of services designed to assist businesses with their shipping and supply chain requirements.

The company reported another earnings miss, maintaining a trend that has kept the stock under pressure in recent years.

With earnings estimates head lower, is it time for investors to look for a different player in the sector?

About the Company

J.B. Hunt Transport Services, Inc. provides a range of surface transportation, delivery, 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 using a fleet of owned and managed equipment, including tractors, trailers, and independent contractor trucks. It serves a wide array of industries with transportation options such as dry-van, refrigerated, expedited, and flatbed freight, and operates a multimodal logistics marketplace.

Founded in 1961, J.B. Hunt is headquartered in Lowell, Arkansas. JBHT is valued at $17 billion and has a Forward PE of 25. The stock holds Zacks Style Scores of “D” in Value, But “A” in Growth.

Q3 Earnings

J.B. Hunt reported disappointing Q4 earnings, missing EPS by a 5.5%. While earnings were up 4.0% over last year's EPS of $1.47, it reflects a troubling trend of underperformance when compared to analyst projections. The revenue of $3.15 billion, though in line with estimates, represents a 4.77% decrease year-over-year, signaling potential challenges in maintaining top-line growth amid a shifting logistics landscape.

J.B. Hunt has missed earnings expectations eight out of the last nine quarters, raising concerns about the company's ability to navigate the current macroeconomic environment. Investors reacted negatively, with shares dipping over 10% following the report.  

Looking at the broader picture, J.B. Hunt’s $157.65 million revenue decline highlights the pressure it’s facing, with weaker earnings suggesting that tightening economic conditions could continue to impact profitability and growth.

Earnings Estimates

Estimates have seen significant cuts across all time frames since the earnings report last week

For the current quarter, forecasts have dropped 7% over the past 7 days, from $1.46 to $1.36.

Looking to next quarter, estimates have declined 5% in that same period, down from $1.70 to $1.61.

For the full year, projections have been adjusted downward by 3%, now at $7.01 from $7.25.

Next year’s outlook follows a trend of revision downward over the last 90 days. Estimates have fallen 3% over that time frame, down to $8.52 from $8.76.

While many analysts are maintaining their bullish ratings, they have lowered their price targets:

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 Take

The recent down move is threatening to break some technical support, with the 200-day holding barely holding after earnings. If that $172 level were to break, the 2024 lows at $155 could be in play.

If the bulls can fill the earnings gap, it would be a positive signal, but until then the bears have control. Look for a move down to $160 if the 200-day MA is broken.

In Summary

J.B. Hunt continues to face significant headwinds, with persistent earnings misses, declining revenue, and downward earnings estimate revisions indicating a tough road ahead.

Despite analysts maintaining bullish ratings, their lowered price targets reflect growing caution, and the stock’s technical support is under increasing pressure.

Until the company shows signs of turning things around, the bearish sentiment is likely to persist. For those interested in the logistics space, a better option might be Knight-Swift Transportation (KNX - Free Report) . The stock is a Zacks Rank #3 (Hold) that is coming off a 3% earnings beat and trading higher so far in 2025.  


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