Shares of J.B. Hunt Transport Services (JBHT) are down 10% after the U.S. trucking company issued quarterly financial results that disappointed Wall Street.
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The Arkansas-based shipping and logistics company reported fourth-quarter earnings per share of $1.53, which fell short of the consensus expectation of $1.61 among analysts who track the company’s progress. Revenue in the quarter totaled $3.1 billion, which matched Wall Street forecasts.
In addition to the poor Q4 results, management at J.B. Hunt offered forward guidance that underwhelmed analysts and investors. The company said in its earnings release that it expects first-quarter 2025 operating income of $170 million, well below the $210 million Wall Street was looking for.
“Tread Carefully”
J.B. Hunt’s latest financial results pour cold water on hopes for a rebound in stocks of U.S. shipping and logistics companies. The entire sector has been in decline after experiencing a boom during the Covid-19 pandemic from 2020 to 2022.
In a note to clients immediately after J.B. Hunt’s Q4 2024 results were made public, David Vernon, a four-star rated analyst at investment house Bernstein, urged investors to “tread carefully” with JBHT stock and “remain on the sidelines” with transportation stocks for the time being. Vernon rates JBHT stock a Hold and has a $180 price target on the shares.
Prior to today (January 17), JBHT stock had declined 5% over the last 12 months.
Is JBHT Stock a Buy?
The stock of J.B. Hunt has a consensus Moderate Buy rating among 13 Wall Street analysts. That rating is based on eight Buy and five Hold recommendations issued in the last three months. The average JBHT price target of $192.46 implies 3.36% upside from current levels.
