J.B. Hunt Transport Services, Inc. ( JBHT Quick Quote JBHT - Free Report) is scheduled to report fourth-quarter 2020 results on Jan 19, after market close.
The Zacks Consensus Estimate for fourth-quarter earnings has been revised 8.6% downward to $1.28 per share in the past 90 days. The company has a disappointing record with respect to earnings surprise. Its earnings outpaced the Zacks Consensus Estimate in one of the last four quarters, while missing in the remaining three.
Against this backdrop, let’s discuss the factors that might have impacted J.B. Hunt’s performance in the December quarter.
Akin to the third quarter, J.B. Hunt’s fourth-quarter performance is likely to have been dented by coronavirus-induced low volumes. The Zacks Consensus Estimate for revenues in the Dedicated Contract Services and Intermodal segment indicates a 20.8% and 1% decrease, respectively, on a year-over-year basis.
Escalating operating expenses stemming from high wages for drivers and increased rail purchased transportation costs are expected to have affected J.B. Hunt’s bottom line. Notably, the Zacks Consensus Estimate for operating income at truckload segment plunged 33.1% on a year-on-year basis.
Meanwhile, 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 2.2% growth sequentially.
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 suggests an increase of 15.9% from the year-ago quarter’s levels.
The proven Zacks model does not predict a beat for J.B. Hunt this time around. Notably, 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 elaborated below. However, this is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here. Earnings ESP: J.B. Hunt has an Earnings ESP of -0.39% as the Most Accurate Estimate is pegged at $1.27, lower than the Zacks Consensus Estimate of $1.28. 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 Q3 Earnings
J.B. Hunt's earnings of $1.18 per share fell short of the Zacks Consensus Estimate of $1.26. Moreover, the bottom line declined 15.7% year over year due to disappointing performance of its JBI unit. Total operating revenues increased 4.6% to $2,472.5 million. Revenues also beat the consensus mark of $2,345.2 million.
Stocks to Consider
Investors interested in the broader
Transportation sector may consider Canadian Pacific Railway Limited (and CP Quick Quote CP - Free Report) , CSX Corporation ( CSX Quick Quote CSX - Free Report) Union Pacific Corporation ( as these stocks possess the right combination of elements to beat on earnings this reporting cycle. UNP Quick Quote UNP - Free Report)
Canadian Pacific has an Earnings ESP of +0.15% and is Zacks #3 Ranked, presently. The company will release fourth-quarter 2020 results on Jan 27.
CSX has an Earnings ESP of +2.23% and a Zacks Rank of 3 at present. The company will release fourth-quarter 2020 results on Jan 21.
Union Pacific has an Earnings ESP of +1.71% and is currently a #3 Ranked player. The company will release fourth-quarter 2020 results on Jan 21.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>