J.B. Hunt Exceeds Q3 Expectations; Shares Hit All-Time High

J.B. Hunt Transport Services, Inc. (JBHT), a provider of innovative logistics solutions throughout North America, reported better-than-expected third-quarter results with double-digit revenue growth across all segments. Shares hit a new all-time high of $192.79 on the news, and closed up 8.7% at $190.55 on October 15.

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The company reported earnings of $1.88 per share, up 59.3% year-over-year, and meaningfully beat Street estimates of $1.79 per share. (See Insiders’ Hot Stocks on TipRanks)

Furthermore, revenue for the quarter grew 27% year-over-year to $3.14 billion and also outpaced analyst estimates of $3.01 billion. Despite the challenging capacity-constrained freight environment, JBHT reported robust revenue growth driven by higher revenue per truckload, longer haul length, and its ability to secure capacity for customers.

In response to JBHT’s quarterly performance, Goldman Sachs analyst Jordan Alliger maintained a Hold rating on the stock and lifted the price target to $190 from $182. This implies that shares are fully valued at current levels.

Alliger raised the company’s full-year 2021 earnings forecast to $6.85 per share (from $6.65 per share) and also increased the FY22 and FY23 forecasts to $7.95 and $8.60 per share, respectively.

Overall, the stock has a Hold consensus rating based on 4 Buys, 9 Holds, and 1 Sell. The average J.B. Hunt price target of $174.91 implies 8.2% downside potential to current levels. Shares have gained 53.7% over the past year.