J.B. Hunt Transport Services (JBHT) stock slumped out of the gate Friday after the transportation and logistics provider reported lackluster results for its fourth quarter.
In the three months ending December 31, J.B. Hunt's revenue decreased 4.8% year over year to $3.15 billion. Its earnings per share (EPS) were up 4.1% from the year-ago period to $1.53.
"While 2024 was a continuation of the challenging freight environment, I am proud of the work of our team and how we position the company for our future," said J.B. Hunt CEO Shelley Simpson on the company's conference call. "We have been in a period of heavy investment to better prepare ourselves to expand all aspects of our business in the future."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $3.15 billion and earnings of $1.61 per share, according to CNBC.
"While market dynamics remain uncertain around the timing and magnitude of a potential inflection, our focus in 2025 is to grow and begin to repair our margins," Simpson said. "We will be coming out of the freight recession from a position of strength."
Is J.B. Hunt stock a buy, sell or hold?
J.B. Hunt Transport Services has lagged the broader market over the past year, down nearly 2% on a total return basis (price change plus dividends) vs the S&P 500's 26% gain. But Wall Street thinks there's plenty to like in the industrial stock.
According to S&P Global Market Intelligence, the average analyst target price for JBHT stock is $189.09, representing implied upside of more than 8% to current levels. Additionally, the consensus recommendation is a Buy.
Not everyone is bullish toward the large-cap stock, though. Financial services firm Bernstein, has a Market-Perform rating (equivalent to a Hold) on JBHT and lowered its price target to $180 from $190 following the earnings release.
"We think it makes sense to tread carefully here and remain on the sidelines. We were expecting and got a beat ... and then got beaten down as we were expecting a better start to the year,” says Bernstein analyst David Vernon. "The high rate of earnings compounding in consensus forecasts (and our less aggressive but still high prior forecast), combined with a high valuation, has kept us from recommending the name the last two years."
Related Content
-
Six Steps to Simplify Your Estate for Your HeirsA simplified estate strategy will expedite the settlement of your estate after you're gone, lower audit risk, reduce costs and cut your beneficiaries' stress.
-
Three Actions to Protect Wealth Transfer Amid Tax UncertaintyHow should families plan to pass on their wealth amid ongoing uncertainty over estate taxes? Even if TCJA provisions are extended, they might still be temporary.
-
Six Steps to Simplify Your Estate for Your HeirsA simplified estate strategy will expedite the settlement of your estate after you're gone, lower audit risk, reduce costs and cut your beneficiaries' stress.
-
Three Actions to Protect Wealth Transfer Amid Tax UncertaintyHow should families plan to pass on their wealth amid ongoing uncertainty over estate taxes? Even if TCJA provisions are extended, they might still be temporary.
-
Business Owners: How to Calculate Your Wealth Gap in Five MinutesHow much would you need from the sale of your business to retire without sacrificing your lifestyle? This simple calculation will give you an idea.
-
Stock Market Today: Dow Adds 485 Points After Trump's Tariff DelayThe White House said it will postpone tariffs on automotive imports from Canada and Mexico for one month.
-
10 Ways to Refine Your Financial Plan for a More Secure FutureSignificant benefits throughout the rest of the year can be had if you take some time now to revisit your financial plan and adjust accordingly.
-
The Most Important Number for a Business Owner Considering a SaleCompany owners hoping to sell and stop working won't know whether an offer on their business is good enough unless they know their 'wealth gap.'Evan
-
Stock Market Today: Dow Drops 670 Points on Trade War EffectA prodigious rally by the battered leader of the AI revolution typified an increasingly volatile picture for investors, traders and speculators.
-
Dividing an Estate? Five Ways to Create TransparencyLetting your children know your intentions while you're still around to explain your reasoning, and while you can make adjustments, can limit discontent later.
