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) Up 3.4% Since Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for J.B. Hunt Transport Services, Inc. (JBHT - Free Report) . Shares have added about 3.4% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is JBHT due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
First-Quarter Earnings
J.B. Hunt's earnings of earnings of $1.07 per share fell short of the Zacks Consensus Estimate by 2 cents. However, the bottom line improved 16.3% on a year-over-year basis despite higher operating expenses. In fact, the 19.6% year-over-year increase in revenues to $1,948.2 million aided results. The top line also cruised ahead the Zacks Consensus Estimate of $1,872.1 million.
Operating income also increased 13% to $169 million (on a reported basis) backed by volume growth among other factors.
In the quarter under review, the company did not repurchase shares. J.B. Hunt stated that $521 million were remaining under its share buyback program as of Mar 31, 2018.
Segmental Performance
The Intermodal division reported quarterly revenues of $1.07 billion, up 14% year over year. Load volumes in the segment were up 6%. Revenue per load, excluding fuel surcharge revenues, increased 4% on a year-over-year basis. Operating income increased 20% year over year backed by volume growth and customer rate increases among other factors.
Dedicated Contract Services revenues increased 26% year over year to $494.5 million. The company added new trucks to the fleet in the first quarter while customer retention rates remained above 98%. Operating income decreased 9% year over year to $41 million, primarily due to foul weather and increased costs like driver wages.
Integrated Capacity Solutions revenues surged 41% year over year to $296.1 million. Revenue per load improved 34% on a year-over-year basis driven by the vibrant market for spot pricing. Spot volumes increased 43% in the quarter under review. Operating income surged 99% on the back of factors like increased gross margin and higher revenue per load.
Truck revenues decreased 1% to $92.7 million. At the end of the quarter, J.B. Hunt operated 1,926 tractors, down 10% year over year. Trailers decreased 6.4% to 7,036 in the quarter under review. Operating income increased 4% to $5 million, courtesy of favorable factors like higher revenue per load.
Liquidity
At the end of the first quarter, cash and cash equivalents were $7.12 million compared with approximately $14.61 million at the end of 2017.
Long-term debt was $752.42 million compared with $1.09 billion at the end of 2017.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been three revisions higher for the current quarter compared to four lower.
J.B. Hunt Transport Services, Inc. Price and Consensus
At this time, JBHT has an average Growth Score of C, though it is lagging a bit on the momentum front with a D. The stock was also allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been trending downward for the stock and the magnitude of these revisions looks promising. Interestingly, JBHT has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
J.B. Hunt (JBHT) Up 3.4% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for J.B. Hunt Transport Services, Inc. (JBHT - Free Report) . Shares have added about 3.4% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is JBHT due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
First-Quarter Earnings
J.B. Hunt's earnings of earnings of $1.07 per share fell short of the Zacks Consensus Estimate by 2 cents. However, the bottom line improved 16.3% on a year-over-year basis despite higher operating expenses. In fact, the 19.6% year-over-year increase in revenues to $1,948.2 million aided results. The top line also cruised ahead the Zacks Consensus Estimate of $1,872.1 million.
Operating income also increased 13% to $169 million (on a reported basis) backed by volume growth among other factors.
In the quarter under review, the company did not repurchase shares. J.B. Hunt stated that $521 million were remaining under its share buyback program as of Mar 31, 2018.
Segmental Performance
The Intermodal division reported quarterly revenues of $1.07 billion, up 14% year over year. Load volumes in the segment were up 6%. Revenue per load, excluding fuel surcharge revenues, increased 4% on a year-over-year basis. Operating income increased 20% year over year backed by volume growth and customer rate increases among other factors.
Dedicated Contract Services revenues increased 26% year over year to $494.5 million. The company added new trucks to the fleet in the first quarter while customer retention rates remained above 98%. Operating income decreased 9% year over year to $41 million, primarily due to foul weather and increased costs like driver wages.
Integrated Capacity Solutions revenues surged 41% year over year to $296.1 million. Revenue per load improved 34% on a year-over-year basis driven by the vibrant market for spot pricing. Spot volumes increased 43% in the quarter under review. Operating income surged 99% on the back of factors like increased gross margin and higher revenue per load.
Truck revenues decreased 1% to $92.7 million. At the end of the quarter, J.B. Hunt operated 1,926 tractors, down 10% year over year. Trailers decreased 6.4% to 7,036 in the quarter under review. Operating income increased 4% to $5 million, courtesy of favorable factors like higher revenue per load.
Liquidity
At the end of the first quarter, cash and cash equivalents were $7.12 million compared with approximately $14.61 million at the end of 2017.
Long-term debt was $752.42 million compared with $1.09 billion at the end of 2017.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been three revisions higher for the current quarter compared to four lower.
J.B. Hunt Transport Services, Inc. Price and Consensus
J.B. Hunt Transport Services, Inc. Price and Consensus | J.B. Hunt Transport Services, Inc. Quote
VGM Scores
At this time, JBHT has an average Growth Score of C, though it is lagging a bit on the momentum front with a D. The stock was also allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been trending downward for the stock and the magnitude of these revisions looks promising. Interestingly, JBHT has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.