J.B. Hunt Transport Services, Inc.


SKU: JBHT-1 Category:


J.B. Hunt Transport Services delivered a disappointing set of results as the company was unable to meet the revenue as well as the earnings expectations of Wall Street. Freight demand was muted and below typical seasonal norms. Revenue for the quarter decreased 18% from the prior year on a consolidated GAAP basis. Diluted earnings per share fell 25%, while operating income dropped by 23%. These decreases were principally caused by decreasing freight and volume, changing pricing patterns, and inflationary cost pressures, especially in the areas of salaries and wages, capital costs, and components and maintenance-related costs. The management is attempting to be as frugal as they can with costs and outlays. With regard to J.B. Hunt’s annual capital plan, their team anticipates net expenditures to be between $1.5 to $1.8 billion, which lowers the high end of their range from the prior $2 billion. While the environment remains unclear and demand for capacity remains low, J.B. Hunt’s team remains laser-focused on how it grows with its clients and will maintain its rigorous approach. We give J.B. Hunt Transport Services a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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