Why J.B. Hunt Stock Is Sinking After Earnings

A J.B. Hunt Transport Services Inc. tractor trailer parked at a freight depot in Indianapolis, Indiana, U.S. — (Image credit: Luke Sharrett/Bloomberg via Getty Images)

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."

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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."

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.