J.B. Hunt Transport Services (NASDAQ:JBHT) stock declined about 4% in yesterday’s extended trade following disappointing third-quarter results. The transportation and logistics company reported earnings of $1.80 per share, down 30% year-over-year, and missed analysts’ estimates of $1.83. The lower earnings numbers were due to subdued shipping demand and lower prices.
Meanwhile, the company’s revenues fell by 18% year-over-year to $3.16 billion and remained below analysts’ expectations of $3.17 billion.
The decline was driven by a 14% decrease in the Intermodal business and a 22% drop in truckload revenue per load. Further, volume in the Integrated Capacity Solutions unit declined by 38%.
J.B. Hunt has attributed its disappointing performance to a decrease in retailer orders, as retailers remain cautious about their inventory levels. However, JBHT noted that inventory destocking gradually started to moderate in June, with the trend continuing in the recently reported quarter as well.
What is the Stock Price Prediction for J.B. Hunt?
In spite of challenging circumstances, the company remains committed to enhancing shareholders’ value through dividend hikes and share buybacks. Furthermore, the company’s strong cash position supports its expansion efforts.
Overall, analysts are cautiously optimistic about the prospects of J.B. Hunt stock, with a Moderate Buy rating based on 12 Buys, six Holds, and two Sells. Currently, Wall Street expects the JBHT stock price to reach $196.55 in the next 12 months, on average, implying a limited upside potential of 0.28%. The stock has gained 14.3% so far in 2023.
