What's in the Cards for J.B. Hunt (JBHT) in Q3 Earnings?
J.B. Hunt Transport Services, Inc. JBHT is scheduled to report third-quarter 2023 results on Oct 17, after market close.
Let’s see how things have shaped up for J.B. Hunt this earnings season.
Q3 Expectations
The Zacks Consensus Estimate for J.B. Hunt’s third-quarter 2023 revenues is pegged at $3.25 billion, indicating a 15.29% decline year over year. The top line is likely to have been weighed down by weakness across the majority of its segments.
The Zacks Consensus Estimate for the third-quarter Intermodal revenues is pegged at $1,550 million, indicating a 15.6% decline from the year-ago reported figure. JBHT’s Intermodal revenues are likely to reflect a year-over-year decline due to a decrease in volume and gross revenue per load.
The consensus mark for Dedicated Contract Services (“DCS”) segment revenues is pegged at $914 million, suggesting a 2.2% rise from the third quarter of 2022 reported number. DCS is expected to have benefited from an increase in average revenue producing trucks and productivity (revenue per truck per week).
The Zacks Consensus Estimate for Integrated Capacity Solutions revenues is pegged at $413 million, hinting at a 30.1% decline from the year-ago reported figure. Lower revenues per load in the company’s transactional business might have weighed on the segment.
The Zacks Consensus Estimate for Truckload revenues is pegged at $197 million, indicating a 28.1% decline from the thirdquarter of 2022 reported number. Truckload revenues are expected to have been hurt by a decline in revenue per load.
The Zacks Consensus Estimate for Final Mile Services revenues is pegged at $230 million, indicating a 7.6% decrease from the thirdquarter of 2022 reported number. Lower demand across many industry verticals served might have weighed on the segment.
On the flip side, higher net interest expense is likely to mar J.B. Hunt’s bottom line. JBHT continues to incur higher interest expenses due to higher interest rates. Further, the company’s bottom line is likely to have been hurt by an expected increase in operating expenses due to high fuel costs, purchased transportation costs, salaries, wages and benefits expenses.Notably, the Zacks Consensus Estimate for JBHT’s third-quarter 2023 earnings has been revised downward by 12.8% in the past 90 days to $1.90 per share.
What Our Model Says
Our proven model does not conclusively predict 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 an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
J.B. Hunt has an Earnings ESP of -2.50% and a Zacks Rank #3.
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
Highlights of Q2
J.B. Hunt’s second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year. Total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat their third-quarter 2023 earnings:
Kirby Corporation KEX has an Earnings ESP of +6.52% and a Zacks Rank #2. KEX will release results on Oct 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
KEX has an expected earnings growth rate of 56.92% for third-quarter 2023. KEX delivered a trailing four-quarter earnings surprise of 8.03%, on average.
The Zacks Consensus Estimate for KEX’s third-quarter 2023 revenues is pegged at $794.60 million, indicating growth of 6.54% year over year.
Old Dominion Freight Line, Inc. (ODFL) has an Earnings ESP of +0.40% and a Zacks Rank #2. ODFL will release results on Oct 25.
The Zacks Consensus Estimate for ODFL’s third-quarter 2023 earnings has been revised upward by 1.4% in the past 90 days. ODFL delivered a trailing four-quarter earnings surprise of 3.86%, on average.
Landstar System, Inc. LSTR has an Earnings ESP of +0.06% and a Zacks Rank #3. LSTR will release results on Oct 25.
LSTR delivered a trailing four-quarter earnings surprise of 1.71%, on average. Shares of LSTR have gained 9.5% so far this year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
Kirby Corporation (KEX) : Free Stock Analysis Report
Landstar System, Inc. (LSTR) : Free Stock Analysis Report
