Will Cost Headwinds Mar J.B. Hunt's (JBHT) Q3 Earnings?
J.B. Hunt Transport Services JBHT is scheduled to report third-quarter 2021 results on Oct 15, before market open.
The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised downward by 1.1% in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the past four quarters, while missing estimates in the other.
Let’s see how things are shaping up for this earnings season.
J.B. Hunt Transport Services, Inc. Price and EPS Surprise
J.B. Hunt Transport Services, Inc. price-eps-surprise | J.B. Hunt Transport Services, Inc. Quote
Factors to Note
The Dedicated Contract Services (“DCS”) segment is expected to have benefited from fleet productivity improvement and increase in average revenue producing trucks in the to-be-reported quarter. The Zacks Consensus Estimate for DCS segment revenues indicates a 3.9% rise from the sequential quarter’s reported figure.
The Integrated Capacity Solutions (“ICS”) segment is expected to reflect benefits from favorable customer freight mix, as well as higher contractual and spot rates. The consensus mark for ICS unit revenues suggests a 2.6% increase from the second-quarter reported figure.
Increases in eastern network and transcontinental volumes are likely to have boosted J.B. Hunt’s intermodal revenues in the soon-to-be-reported quarter. The Zacks Consensus Estimate for intermodal revenues hints at a 7.5% jump from the previous quarter’s reported figure.
The company’s expanded final mile network (delivery of goods at customers’ doorstep) is likely to have driven its third-quarter performance. The consensus mark for Final Mile Services revenues shows a 1.4% rise from the second-quarter reported number.
However, J.B. Hunt’s bottom line might have been hurt by an expected increase in operating expenses due to rise in rents and purchased transportation costs, as well as salaries, wages and benefits expenses.
Earnings Whispers
The proven Zacks model does not conclusively predict an earnings beat for J.B. Huntthis 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. 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-0.64% as the Most Accurate Estimate is pegged at $1.76, lower than the Zacks Consensus Estimate of $1.77. 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 #3, currently.
Highlights of Q2 Earnings
In the last reported quarter, J.B. Hunt delivered a positive earnings surprise of 3.9%. The bottom line surged 41.2% year over year due to higher revenues across all segments. Total revenues also outperformed the Zacks Consensus Estimate and jumped 35.5% year over year.
Stocks to Consider
Investors interested in the broader Transportation sector may consider C.H. Robinson Worldwide CHRW, Knight-Swift Transportation Holdings KNX and Landstar System LSTR, as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
C.H. Robinson has an Earnings ESP of +2.03% and a Zacks Rank #3. The company will report third-quarter results on Oct 26.
Knight-Swift has an Earnings ESP of +0.77% and a Zacks Rank #3. The company is scheduled to report third-quarter earnings numbers on Oct 20.
Landstar Systemhas an Earnings ESP of +4.13% and a Zacks Rank #2. The company is slated to release third-quarter financial numbers on Oct 20.
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J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
KnightSwift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report
Landstar System, Inc. (LSTR) : Free Stock Analysis Report
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