Latest news with #JBHT
Yahoo
25-05-2025
- Business
- Yahoo
The three-year shareholder returns and company earnings persist lower as J.B. Hunt Transport Services (NASDAQ:JBHT) stock falls a further 7.2% in past week
For many investors, the main point of stock picking is to generate higher returns than the overall market. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) shareholders, since the share price is down 21% in the last three years, falling well short of the market return of around 44%. The falls have accelerated recently, with the share price down 16% in the last three months. Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn. We check all companies for important risks. See what we found for J.B. Hunt Transport Services in our free report. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During the three years that the share price fell, J.B. Hunt Transport Services' earnings per share (EPS) dropped by 11% each year. In comparison the 8% compound annual share price decline isn't as bad as the EPS drop-off. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of J.B. Hunt Transport Services, it has a TSR of -19% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! Investors in J.B. Hunt Transport Services had a tough year, with a total loss of 12% (including dividends), against a market gain of about 11%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 4% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid. J.B. Hunt Transport Services is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
16-04-2025
- Business
- Forbes
What's Next For JBHT Stock?
UKRAINE - 2021/05/08: In this photo illustration, the J.B. Hunt logo of the American transportation ... More and logistics company seen on a smartphone and on a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) Following the release of its Q1 results, JB Hunt Transport Services stock traded lower on Wednesday, April 16th. Although the trucking company reported first-quarter revenue of $2.92 billion and earnings per share of $1.17—both slightly above analysts' estimates of $2.91 billion in sales and $1.15 EPS—these figures marked a year-over-year decline. Investors were concerned by management's remarks about tariff-related demand pressures and rising costs. We believe JBHT stock, which is currently priced near $125, poses a risky investment. However, this elevated risk has contributed to its low valuation, potentially making it appealing to investors comfortable with volatility. Our view is based on a comparison of JBHT's current valuation against its operating metrics over the years, along with a review of its financial health. Our analysis—spanning Growth, Profitability, Financial Stability, and Downturn Resilience—highlights operational and financial weaknesses, as detailed below. In terms of sales or profit multiples, JBHT stock appears slightly undervalued relative to the broader market. JB Hunt Transport Services' Revenues have declined in recent years. JB Hunt Transport Services' margins are subpar relative to peers in the Trefis universe. The company's balance sheet appears relatively weak. JBHT has shown slightly better performance than the S&P 500 during select downturns. For a detailed analysis, check our dashboard How Low Can JB Hunt Transport Services Stock Go In A Market Crash? and our overview of market crashes. Here's how JB Hunt Transport Services scores across our framework: Although JBHT demonstrates underperformance across several metrics, its historical resilience and current low valuation—potentially reflecting near-term risks like tariffs—suggest a possible upside. In our view, this may present a buying opportunity for long-term investors. For those with lower risk tolerance, a hedged approach within a diversified portfolio, such as the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark, might offer a smoother ride while still capturing potential upside. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Yahoo
16-04-2025
- Business
- Yahoo
JB Hunt Transport Services Inc (JBHT) Q1 2025 Earnings Call Highlights: Navigating Challenges ...
Revenue: Declined 1% year-over-year. Operating Income: Decreased 8% compared to the prior year quarter. Diluted EPS: Decreased 4% year-over-year. Intermodal Volumes: Up 8% year-over-year, setting a first-quarter volume record. Net Capital Expenditures: Expected to be between $500 million to $700 million for 2025. Stock Repurchase: $234 million repurchased during the first quarter, with $650 million remaining on authorization. New Senior Notes Issued: $750 million issued to extend debt maturity. Truck Sales in Dedicated Segment: Approximately 260 trucks sold in the first quarter. Customer Count in ICS: Increased by more than 20% compared to the first quarter last year. Warning! GuruFocus has detected 6 Warning Signs with JBHT. Release Date: April 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. JB Hunt Transport Services Inc (NASDAQ:JBHT) achieved record first-quarter intermodal volumes, indicating strong demand and operational excellence. The company has successfully reduced people costs by over $200 million through headcount attrition and performance management. JB Hunt Transport Services Inc (NASDAQ:JBHT) has a strong safety culture, with further improvements in key safety metrics and a significant safety accomplishment in their maintenance team. The company has a strong brand and customer sentiment, receiving several awards during the quarter. JB Hunt Transport Services Inc (NASDAQ:JBHT) has a diverse set of customers and a strong pipeline in their dedicated segment, with approximately 260 trucks of new deals sold in the first quarter. Revenue declined by 1%, operating income decreased by 8%, and diluted EPS decreased by 4% compared to the prior year quarter, primarily due to lower yields and inflationary cost pressures. The company faces inflationary cost headwinds, including noticeable increases in insurance premiums for the third consecutive year. Demand for big and bulky products in the Final Mile segment remains muted, with weak demand for furniture, exercise equipment, and appliances. The truckload market continues to exceed demand, leading to competitive pricing pressures. The uncertain macro environment and trade policy remain top concerns for customers, impacting supply chain strategies and potentially affecting future demand. Q: Can you provide an update on the intermodal bid season and whether you expect rate increases in 2025? A: Darren Field, Executive Vice President and President of Intermodal, mentioned that while the environment remains competitive, they have achieved some rate increases and filled some empty legs. However, they have also lost some business due to disciplined pricing. The mix of business, particularly growth in the Eastern network, will influence revenue per unit. Q: How are you managing costs given the uncertain demand and visibility into volume? A: Shelley Simpson, President and CEO, explained that they are focused on growing and repairing margins while being fluid with scenario planning. They are considering cost management, stock buyback strategies, and prudent capital spending to align with changing conditions. Q: What are your thoughts on the potential impact of tariffs and pull-forward on volume growth? A: Spencer Frazier, Executive Vice President of Sales and Marketing, noted that while customers are scenario planning, the uncertain macro environment could create opportunities for JB Hunt to optimize supply chains. Darren Field added that they have not seen significant pull-forward from customers, but they remain cautious and adaptable. Q: How are you addressing the competitive landscape in the dedicated market? A: Brad Hicks, Executive Vice President and President of Highway Services, stated that the dedicated market remains competitive, particularly in renewals. However, JB Hunt's value proposition in private fleet conversions, driver recruitment, and operational excellence differentiates them from competitors. Q: What are the prospects for intermodal margin improvement through the rest of the year? A: Darren Field emphasized that while they are not providing specific guidance, they are focused on executing for customers, finding efficiencies, and growing volumes in the right corridors at the right rates to improve margins. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Forbes
11-04-2025
- Business
- Forbes
Will JB Hunt's Earnings Drive Its Stock Up Or Down?
JB Hunt Transport Services is set to announce its earnings on Tuesday, April 15, 2025. For the upcoming quarter, consensus estimates forecast earnings of $1.15 per share on revenue of $2.91 billion. This compares to earnings of $1.22 per share on revenue of $2.94 billion in the same quarter last year. JBHT currently holds a market capitalization of $14 billion. Over the past twelve months, the company reported $12 billion in revenue, along with $831 million in operating profits and $571 million in net income. Trefis Although JBHT stock rebounded significantly after President Trump declared a 90-day pause on reciprocal tariffs, the stock remains down 17% year-to-date. This drop is largely driven by the broader market sell-off, exacerbated by wider macroeconomic concerns. President Donald Trump's sweeping tariffs on imports from more than 100 countries have intensified fears about potential economic downturns and reduced consumer spending. As a result, the logistics sector faces a tough environment marked by weakening demand and heightened economic uncertainty. While the outcome will depend heavily on how the results compare with market expectations, historical performance trends can offer valuable insights for event-driven traders. There are two key strategies to consider: either analyze historical odds and establish a position ahead of earnings, or examine post-earnings return patterns and trade based on observed correlations in short- and medium-term returns. See earnings reaction history of all stocks Some key observations on one-day (1D) post-earnings returns: Further data on 5-Day (5D) and 21-Day (21D) post-earnings returns is summarized in the table below. An alternative approach with potentially lower risk (provided correlations are meaningful) involves analyzing the relationship between short- and medium-term returns. Identifying the pair with the strongest correlation allows traders to act accordingly. For example, if 1D and 5D returns show a strong correlation, a trader might go "long" for 5 days following a positive 1D return. The following data shows correlations over the past 5 years and 3 years. '1D_5D' refers to the correlation between 1-day and 5-day post-earnings returns. Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark(combination of all 3, the S&P 500, S&P mid-cap, and Russell 2000), to produce strong returns for investors. Separately, if you want upside with a smoother ride than an individual stock like Johnson & Johnson, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
