J.B Hunt Transportation (JBHT) is grappling with significant challenges prevailing in the freight market. Weak liquidity is further hurting the company’s prospects, making it an unattractive choice for investors’ portfolios.Let’s delve deeper.JBHT: Key Risks to WatchSouthward Earnings Estimate Revision:The Zacks Consensus Estimate for the current-quarter earnings has been revised 8.7% downward over the past 60 days and is pegged at $1.36 per share. Meanwhile, the Zacks Consensus Estimate for 2025 earnings ...

J.B. Hunt Transport Services (JBHT) FY Conference May 20, 2025 12:20 PM ET Speaker0 Ready? All right. Fantastic. We're going to get going with our next session with J. B. Hunt. We've got Darren Field, the President of Intermodal and Brad Delco from Investor Relations up on stage. Darren, thanks for being back. I'll pass it to you if any sort of opening points you want to make and then we've got a lot to talk about. Speaker1 Just hey, look, we're excited to be back at Wolf. I don't know how many years in a r ...

Summary of J.B. Hunt Transport Services (JBHT) Conference Call Company Overview - **Company**: J.B. Hunt Transport Services (JBHT) - **Event**: 2025 Conference on May 13, 2025 - **Speakers**: Spencer Fraser (EVP of Sales and Marketing), Stacy Griffin (SVP of Intermodal), Brad Delco (SVP of Finance and IR) Key Industry Insights 1. **Market Agility**: Customers are seeking partners who can adapt to changing needs amid market volatility, which aligns with JB Hunt's business model [5][6] 2. **Cost Pressures**: The transportation industry is facing inflationary cost pressures after three years of deflationary rates, prompting JB Hunt to focus on lowering service costs while improving margins [5][6] 3. **Intermodal Shift**: Customers are increasingly shifting from highway to intermodal transportation to control costs, indicating a growing trend in intermodal services [7][21] Financial Performance 1. **Intermodal Growth**: JB Hunt reported an 8% increase in intermodal loads in Q1, attributed to strong service and customer conversion from highway to intermodal [21][22] 2. **Revenue Decline**: The company experienced a 1% decline in revenues despite an 8% growth in intermodal volume, highlighting challenges in pricing and cost management [64] 3. **Insurance Costs**: Insurance and claims costs rose from 1.5% to 3.3% of revenue, significantly impacting profitability [65][66] Customer Sentiment 1. **Consumer Health**: Customers reported a steady state in consumer engagement, with no significant macroeconomic concerns affecting demand [18][19] 2. **Operational Excellence**: JB Hunt's focus on operational excellence has led to the highest retention and customer count in its history, despite competitive pressures [51][52] Strategic Focus 1. **Pricing Strategy**: JB Hunt is focused on improving pricing to enhance margins while maintaining a balance in service offerings [44][47] 2. **Fleet Management**: The company aims for net fleet growth of 800 to 1,000 trucks, despite facing losses in the dedicated fleet segment [88][89] 3. **Digital Marketplace**: The ICS digital marketplace is undergoing changes to enhance security and reduce fraud, with a focus on automation and customer service [85][86] Market Dynamics 1. **Intermodal vs. Trucking**: The spread between intermodal and trucking rates remains healthy, with a 10-15% spread in the East and 20-30% in the West, supporting conversion to intermodal [94][96] 2. **Seasonality and Demand**: The company is cautious about predicting seasonal impacts due to market volatility, with ongoing discussions about customer forecasts [71][75] Conclusion - JB Hunt is navigating a complex market landscape characterized by cost pressures, shifting customer preferences towards intermodal services, and a focus on operational excellence. The company is strategically positioned to leverage its strengths in service and pricing to enhance profitability while managing the challenges posed by rising costs and competitive dynamics.

Revenue Performance - Total consolidated operating revenues for Q1 2025 were $2.92 billion, a 1% decrease from $2.94 billion in Q1 2024[52] - JBI segment revenue increased 5% to $1.47 billion in Q1 2025, with load volumes up 8% compared to Q1 2024[53] - DCS segment revenue decreased 4% to $822 million in Q1 2025, with average revenue producing trucks down 5%[54] - ICS segment revenue decreased 6% to $268 million in Q1 2025, with overall volumes down 13%[55] - FMS segment revenue decreased 12% to $201 million in Q1 2025, primarily due to decreased customer demand[56] - JBT segment revenue totaled $167 million in Q1 2025, a 7% decrease from $178 million in Q1 2024[57] Operating Expenses and Income - Total operating expenses decreased 0.3% in Q1 2025, while operating revenues decreased 0.8%[59] - Operating income decreased to $178.7 million in Q1 2025 from $194.4 million in Q1 2024[59] - Rents and purchased transportation costs increased 1.0% in Q1 2025, driven by increased JBI load volume[60] - Salaries, wages, and employee benefits costs decreased by 1.0% in Q1 2025 compared to Q1 2024, primarily due to a reduction in employee headcount[61] - Depreciation and amortization expenses decreased by 1.9% in Q1 2025, attributed to lower truck and tractor counts and reduced depreciation of information systems[62] - Fuel costs decreased by 7.8% in 2025 compared to 2024, mainly due to lower fuel prices and reduced road miles[62] - Insurance and claims expenses increased by 12.3% in 2025 compared to 2024, driven by higher claim severity and increased insurance premiums[63] Cash Flow and Investments - Net cash provided by operating activities totaled $404.2 million in Q1 2025, down from $466.5 million in Q1 2024[65] - Net cash used in investing activities increased to $225.1 million in Q1 2025 from $162.4 million in Q1 2024, primarily due to higher real estate acquisitions and equipment purchases[65] - Net capital expenditures were approximately $225.1 million in Q1 2025, compared to $166.2 million in Q1 2024, with expectations to spend between $500 million and $700 million for the full year 2025[69] Tax and Debt - The effective income tax rate decreased to 26.5% in Q1 2025 from 28.7% in Q1 2024, primarily due to lower taxable earnings[64] - The company had a $139.2 million outstanding balance under its senior credit facility at an average interest rate of 5.33% as of March 31, 2025[67] - The company expects to pay the entire outstanding balance of its senior notes maturing in 2026 using existing cash, revolving credit, or other long-term financing sources[66]

Core Insights - J.B. Hunt's stock price has faced pressure due to tariff threats and disappointing Q1 guidance, leading to a new low and presenting a potential deep-value opportunity for investors [1][2][3] Financial Performance - Q1 revenue was reported at $2.92 billion, a decrease of 0.7% year-over-year but 70 basis points better than expectations [5] - The company experienced margin pressure, but results were better than anticipated, allowing for continued financial health, including dividends and share repurchases [7][8] Segment Performance - The Intermodal segment showed a 5% increase driven by volume growth, while other segments faced declines: Dedicated Contract Services down 4%, Integrated Capacity Solutions down 6%, Trucking down 7%, and Final Mile Services down 12% [6] Analyst Sentiment - Following the Q1 release, five analysts revised their price targets, with four lowering them; however, the consensus remains a solid Buy rating with a forecasted upside of 25% [2][3] - One outlier analyst set a price target that suggests nearly 40% upside, indicating a significant value opportunity [3] Institutional Activity - Institutional activity has been bullish, with ownership increasing to approximately 75% of the stock, providing a solid support base [9][10] - Despite some selling activity reaching multi-year highs, the overall sentiment remains positive for J.B. Hunt [9] Dividend Information - The stock offers a dividend yield of 1.36%, with a recent annual dividend of $1.76 and a strong track record of 22 years of dividend increases [9]

Group 1 - J.B. Hunt Transport Services, Inc. (JBHT) experienced a stock price increase despite a disappointing earnings report, with Q1 earnings per share at $1.17, slightly below the expected $1.19 [1] - The stock is currently facing resistance at the $128.00 level, which was previously a support level two weeks ago [1] - Traders are closely monitoring the stock's performance around the $128.00 mark, as it has become a significant psychological level for investors [2][5] Group 2 - Recent trading activity shows that many investors who purchased shares around the $128.00 level are now regretting their decision, leading to sell orders placed at or near this price [5] - If JBHT can break through the $128.00 resistance and hold above it, it may indicate that sellers have exhausted their orders, potentially leading to a price increase as buyers compete for shares [6]

Following my coverage of J.B. Hunt Transport Services (NASDAQ: JBHT ) in April 2024, which I downgraded to a hold rating as I was worried about the near-term performance, this post is to provide an update on myI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to ...

It’s been about 27 ½ months since I suggested investors avoid J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT ), and in that time, the shares are down about 27.3% against a gain of about 39% for the S&PI'm a quant investment newsletter writer who marries fundamental analysis with the latest research in momentum. Over the past few years, I’ve developed a piece of software that helps me track the level of optimism and pessimism embedded in stock price. I seek to challenge the assumptions embedded in price by ...

J.B. Hunt Transport Services' (JBHT) first-quarter 2025 earnings per share of $1.17 surpassed the Zacks Consensus Estimate of $1.15. Quarterly earnings declined 4.1% year over year. Results were hurt by weak freight demand and excess capacity.Total operating revenues of $2.92 billion narrowly beat the Zacks Consensus Estimate but declined 0.8% year over year. The decline was primarily due to a 5% decrease in average truck count in the Dedicated Contract Services unit, 15% fewer stops in the Final Mile Servi ...

Q1 2025 Results J.B. Hunt Transport Services, Inc. Truckload (JBT) Disclosure This presentation and discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "estimates," or similar expressions are intended to identify these forward-looking statements. These statements are based on J.B. Hunt's current plans and expectations and involve risks and uncertainties that could cause future activit ...