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Earnings Miss: J.B. Hunt Transport Services, Inc. Missed EPS By 10% And Analysts Are Revising Their Forecasts

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Simply Wall St
·4 min read
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J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) shareholders are probably feeling a little disappointed, since its shares fell 7.1% to US$128 in the week after its latest third-quarter results. Statutory earnings per share of US$1.18 unfortunately missed expectations by 10%, although it was encouraging to see revenues of US$2.5b exceed expectations by 4.8%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for J.B. Hunt Transport Services

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the current consensus from J.B. Hunt Transport Services' 20 analysts is for revenues of US$10.2b in 2021, which would reflect a decent 9.0% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 31% to US$6.12. Before this earnings report, the analysts had been forecasting revenues of US$10.0b and earnings per share (EPS) of US$6.12 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$140, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on J.B. Hunt Transport Services, with the most bullish analyst valuing it at US$155 and the most bearish at US$105 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the J.B. Hunt Transport Services' past performance and to peers in the same industry. Next year brings more of the same, according to the analysts, with revenue forecast to grow 9.0%, in line with its 10.0% annual growth over the past five years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.5% next year. It's clear that while J.B. Hunt Transport Services' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$140, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple J.B. Hunt Transport Services analysts - going out to 2024, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for J.B. Hunt Transport Services that you need to take into consideration.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.