J.B. Hunt Fundamentals Still Stuck In The Mud: Analyst

J.B. Hunt Transport Services JBHT is experiencing a modest share price increase on Wednesday as the market digests its latest earnings report.

Total operating revenue for the current quarter was $2.93 billion, flat with the second quarter of 2024. Operating income for the current quarter decreased 4% to $197.3 million versus $205.7 million for the second quarter of 2024.

Following the results, analysts offered their key reactions. Benchmark analyst Christopher Kuhn reiterated a Buy rating on the stock, maintaining a price forecast of $165. Stifel analyst J. Bruce Chan, however, maintained a Hold rating and lowered the price forecast from $150 to $145.

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Benchmark

Kuhn noted that while most segments aligned with their operating income expectations, the upside came from stronger-than-anticipated performance in the Dedicated segment. Intermodal volumes rose 6% year-over-year, surpassing their projections, with sequential gains from the first quarter.

Although declines in revenue per load were expected due to fuel and mix, improved network balance kept JBI margins steady at the forecasted 6.7%. Revenue per load excluding fuel dipped 3.2% year-over-year but still exceeded expectations.

Dedicated segment revenue matched projections, but operating profit came in 14% higher, helped by cost controls and ramp-up benefits from new accounts.

While ICS remained unprofitable, results are improving and should turn positive in 2025, especially since $35 million in BNSF-related costs won’t recur. Kuhn said estimates are currently under review, and further updates will follow.

Stifel

The analyst characterized the second quarter of 2025 as a “slight beat,” but emphasized that the company’s “fundamentals are still stuck in the mud.”

Chan noted that, broadly, the quarter mirrored the prior one; JBI load growth continued, but revenue per load remained under pressure, while JBT pricing, Final Mile performance, and DCS truck count also stayed weak.

He acknowledged that the company narrowed its year-over-year operating income decline through productivity and cost actions, yet inflation remains a challenge. Despite trade policy uncertainty in the second quarter, the analyst described the environment as stable.

Looking ahead, Chan expressed growing confidence in the intermodal conversion story, pointing out that even as spot rates for truckload remain soft, budget-conscious shippers are actively seeking cost-saving options. With abundant container availability, he sees IMCs as an attractive, low-cost capacity source if demand improves.

All things considered, the analyst views the stock more favorably around the $130 range. The analyst lowered their 2025 and 2026 EPS estimates to $5.65 and $7.25 from $5.85 and $7.50.

Chan noted that the results don’t significantly alter their broader view of the sector and said they continue to prefer stocks with clearer self-help levers, stronger downside protection, more attractive valuations, or structural market share and pricing advantages.

Price Action: JBHT shares are trading higher by 1.69% to $151.39 at last check Wednesday.

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