Back to top

Image: Bigstock

Is a Beat Likely for J.B. Hunt (JBHT) Stock in Q3 Earnings?

Read MoreHide Full Article

J.B. Hunt Transport Services, Inc. (JBHT - Free Report) is scheduled to report third-quarter 2020 results on Oct 16, before market open.

The Zacks Consensus Estimate for third-quarter earnings has been revised 1.7% upward to $1.21 per share in the past 60 days. Moreover, the company has an impressing average earnings surprise of 4.4%.

Let’s discuss the factors that might have had an impact on J.B. Hunt’s September end-quarter performance.

The company's Dedicated Contract Services (DCS) segment and Intermodal segment are expected to have performed impressively and likely to have boosted the third-quarter top line. The Zacks Consensus Estimate for revenues in the DCS and Intermodal segment indicates a 23.1% and 11.3% increase, respectively, from the June-end quarter’s reported figure.

The Integrated Capacity Solutions (ICS) segment is also likely to have performed well during the quarter under review. The Zacks Consensus Estimate for revenues in the ICS segment has gained 9.9% sequentially.

In response to social distancing norms, online shopping space is growing leaps and bounds. Evidently, rapid expansion of the company’s Final Mile network (delivery of goods to customer’s doorstep) is expected to have outweighed traditional freight. The Zacks Consensus Estimate for revenues in the Final Mile services segment indicates a 11.4% growth sequentially.

Nevertheless, escalating operating expenses due to high wages for drivers and increased rail purchased transportation costs are expected to have affected J.B. Hunt’s bottom line.

Earnings Whispers

The proven Zacks model predicts an earnings beat for J.B. Hunt this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive earnings surprise, as it is in the case for J.B. Hunt stock. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: J.B. Hunt has an Earnings ESP of 5.16% as the Most Accurate Estimate is pegged at $1.28, higher than the Zacks Consensus Estimate of $1.21. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: J.B. Hunt carries a Zacks Rank #2.

Highlights of Q2 Earnings

J.B. Hunt's second quarter earnings of $1.14 per share surpassed the Zacks Consensus Estimate by 31 cents. The bottom line, however, declined 16.8% year over year due to the disappointing performance of its intermodal unit. Moreover, total operating revenues declined 5.1% to $2,145.6 million. Nevertheless, revenues surpassed the consensus mark of $2,060.9 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Union Pacific Corporation (UNP - Free Report) , Kansas City Southern and Norfolk Southern Corporation (NSC - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Union Pacific has an Earnings ESP of +2.05% and is Zacks #3 Ranked, presently. The company will release third-quarter 2020 results on Oct 22.

Kansas City Southern has an Earnings ESP of +1.91% and a Zacks Rank of 3 at present. The company will release third-quarter 2020 results on Oct 16.

Norfolk Southern has an Earnings ESP of +1.99% and is currently a #3 Ranked player. The company will release third-quarter 2020 results on Oct 28.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>
 

Published in