Intermodal Strength Drives J B Hunt Transport's Q1 Beat, Says Analyst

Stephens & Co. analyst Justin Long reiterated an Overweight rating on the shares of J B Hunt Transport Services Inc JBHT and lowered the price forecast from $170.00 to $165.00.

JBHT posted first-quarter FY25 earnings per share of $1.17, topping both internal and consensus forecasts.

The upside was largely due to stronger intermodal revenue, reduced losses in its Integrated Capacity Solutions (ICS) unit, and lower tax and interest costs, said the analyst.

J.B. Hunt's Intermodal (JBI) segment outperformed expectations, with volumes rising 7.6% year-over-year and contributing $0.07 in EPS upside, driven by strong growth in the Eastern network.

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The Dedicated segment slightly beat revenue and margin estimates, adding $0.01 to EPS.

However, weaker Final Mile Services (FMS) and Truckload (JBT) performance weighed on results. Intermodal volumes declined more than seasonal norms but still outperformed expectations.

Final Mile revenue met projections, but weaker margins resulted in a $0.04 EPS hit. Brokerage missed revenue estimates but narrowed losses, adding $0.04 to EPS. Truckload revenue came in slightly light, and lower margins led to a $0.03 EPS shortfall.

The company continues to reduce ICS expenses and could achieve profitability in that segment this year. JBHT repurchased about 1% of its shares and maintains a focus on shareholder returns.

Price Action: JBHT shares traded lower by 8.47% at $123.68 at last check on Wednesday.

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