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
-
Callable CDs Have High Rates. We Still Don't Recommend You Get ThemInvestors must carefully consider the trade-offs, as falling interest rates could lead to reinvestment at a lower yield and make selling on the secondary market difficult.
-
High Mortgage Rates Are Holding My Retirement Hostage: Can I Still Downsize and Retire?We ask retirement wealth advisers what to do.
-
Callable CDs Have High Rates: We Still Don't Recommend You Get Them
Investors must carefully consider the trade-offs, as falling interest rates could lead to reinvestment at a lower yield and make selling on the secondary market difficult.
-
Five Big Beautiful Bill Changes and How Wealthy Retirees Can BenefitHere's how wealthy retirees can plan for the changes in the new tax legislation, including what it means for tax rates, the SALT cap, charitable giving, estate taxes and other deductions and credits.
-
Portfolio Manager Busts Five Myths About International InvestingThese common misconceptions lead many investors to overlook international markets, but embracing global diversification can enhance portfolio resilience and unlock long-term growth.
-
Stock Market Today: Nasdaq Hits a New High as Nvidia SoarsA big day for Nvidia boosted the Nasdaq, but bank stocks created headwinds for the S&P 500.
-
June CPI Signals Tariff Impact: What the Experts SayThe June CPI report shows that inflation is accelerating, but at a pace that's in line with economists' expectations.
-
I'm a Financial Planner: Here Are Five Smart Moves for DIY InvestorsYou'll go further as a DIY investor with a solid game plan. Here are five tips to help you put together a strategy you can rely on over the years to come.
-
Neglecting Car Maintenance Could Cost You More Than a Repair, Especially in the SummerWorn, underinflated tires and other degraded car parts can fail in extreme heat, causing accidents. If your employer is ignoring needed repairs on company cars, there's something employees can do.
-
'Drivers License': A Wealth Strategist Helps Gen Z Hit the RoadFrom student loan debt to a changing job market, this generation has some potholes to navigate. But with those challenges come opportunities.
