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 ...

Core Insights - J.B. Hunt Transport Services (JBHT) reported first-quarter 2025 earnings per share of $1.17, exceeding the Zacks Consensus Estimate of $1.15, although quarterly earnings declined 4.1% year over year due to weak freight demand and excess capacity [1][2] Financial Performance - Total operating revenues for the quarter were $2.92 billion, slightly above the Zacks Consensus Estimate but down 0.8% year over year, primarily due to a 5% decrease in average truck count in the Dedicated Contract Services unit and a 15% drop in stops in the Final Mile Services unit [2] - Total operating income decreased 8% year over year to $178.7 million [2] Segmental Highlights - The Intermodal division generated revenues of $1.47 billion, a 5% increase year over year, with intermodal volume rising 8% [3] - Dedicated Contract Services segment revenues fell 4% year over year to $822 million, impacted by a 5% decline in average trucks [4] - Integrated Capacity Solutions revenues decreased 6% year over year to $268 million, with segmental volumes down 13% [5] - Truckload revenues fell 7% year over year to $167 million, with load volumes increasing 2% [6] - Final Mile Services revenues dropped 12% year over year to $201 million, with operating income plunging 69% [8] Liquidity and Share Buyback - At the end of the first quarter of 2025, JBHT had cash and cash equivalents of $43 million and long-term debt of $880.2 million [9] - The company repurchased 1,400,000 shares for $234 million during the quarter, with approximately $650 million remaining under its share repurchase authorization [9]

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 ...

Financial Data and Key Metrics Changes - For Q1 2025, consolidated GAAP 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 [15][16][20] - The company has reduced people costs by over $200 million over the past two years through headcount attrition and performance management, although some savings were offset by merit increases and higher benefit costs [16][17] Business Line Data and Key Metrics Changes - Intermodal volumes reached record levels in Q1 2025, with an 8% year-over-year increase, and strong performance in the Eastern network, which grew by 13% [13][45] - The Dedicated Contract Services segment continues to have industry-leading margins, with a focus on maintaining balance in the network to drive the best utilization of trailing assets [31][39] - The Final Mile segment experienced muted demand for big and bulky products, although fulfillment network demand was positive due to off-price retail trends [30] Market Data and Key Metrics Changes - Overall customer demand trended in line with normal seasonality, despite weather events impacting operations in January and February [22] - The truckload market has loosened as the quarter progressed, indicating that truckload capacity continues to exceed demand [23] Company Strategy and Development Direction - The company remains focused on operational excellence, providing valuable services to customers, and scaling strategic investments [10][12] - Management is exploring various options to aggressively eliminate costs while remaining agile to adapt to changing market dynamics [10][11] Management's Comments on Operating Environment and Future Outlook - The management team expressed confidence in the company's positioning for future growth despite a challenging freight environment, emphasizing the importance of service levels and safety culture [12][13] - The company is committed to repairing margins and improving financial performance, with a focus on cost discipline and productivity improvements [9][19] Other Important Information - The company issued $750 million of new senior notes to extend the term on some maturing debt and expects net capital expenditures to fall between $500 million to $700 million for 2025 [20] - During Q1, the company repurchased $234 million of stock, with $650 million remaining under current authorization [21] Q&A Session Summary Question: Can you provide insights on intermodal bid season and rate increases? - Management indicated mild satisfaction with bid season success, achieving some rate increases while also losing some business due to disciplined pricing [56][57] Question: How do you view the impact of tariffs on the market? - Management acknowledged potential impacts of tariffs on supply and demand but noted the difficulty in predicting magnitude and timing [25][86] Question: What is the outlook for intermodal pricing and profitability? - Management stated that while they are working to repair margins, the competitive environment and network inefficiencies continue to pose challenges [135][136] Question: How is the company managing its capacity in light of current market conditions? - Management emphasized that reducing capacity is not the strategy; instead, they are looking for ways to utilize excess equipment effectively [116][119] Question: What are the expectations for intermodal revenue per carload in the second half of the year? - Management noted that while there is a consensus for a 2% gain, the ongoing negotiations and market conditions could lead to different outcomes [148][150]

Core Insights - JB Hunt reported $2.92 billion in revenue for Q1 2025, a year-over-year decline of 0.8%, with EPS of $1.17 compared to $1.22 a year ago, indicating a slight decrease in profitability [1] - The revenue exceeded the Zacks Consensus Estimate by 0.10%, while the EPS surprised by 1.74% over the consensus estimate of $1.15 [1] Revenue Performance - Dedicated revenue was $822.29 million, down 4.4% year-over-year, compared to the average estimate of $856.59 million [4] - Integrated Capacity Solutions revenue was $268.04 million, a 6% decline year-over-year, against an estimate of $283.57 million [4] - Intermodal revenue increased by 5.3% year-over-year to $1.47 billion, surpassing the average estimate of $1.42 billion [4] - Truckload revenue was $166.63 million, down 6.6% year-over-year, compared to the average estimate of $173.99 million [4] - Final Mile Services revenue decreased by 12.5% year-over-year to $200.70 million, below the estimate of $223.06 million [4] - Fuel surcharge revenues were $361.66 million, down 7.6% year-over-year, slightly above the estimate of $359.16 million [4] Key Metrics - Average trucks in Dedicated segment were 12,624, slightly below the estimate of 12,736 [4] - Revenue per load in Integrated Capacity Solutions was $1,946, exceeding the estimate of $1,890.89 [4] - Revenue per load in Intermodal was $2,816, slightly above the estimate of $2,802.74 [4] - Trailing equipment in Intermodal was 124,971, exceeding the estimate of 123,062 [4] - Operating revenues, excluding fuel surcharge revenues, were $2.56 billion, a 0.3% increase year-over-year, but below the estimate of $2.58 billion [4] - Intersegment eliminations were -$5.53 million, worse than the estimate of -$4.63 million, representing a 30.2% increase year-over-year [4] Stock Performance - JB Hunt shares returned -7.8% over the past month, underperforming the Zacks S&P 500 composite's -3.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Group 1: Earnings Performance - JB Hunt reported quarterly earnings of $1.17 per share, exceeding the Zacks Consensus Estimate of $1.15 per share, but down from $1.22 per share a year ago, representing an earnings surprise of 1.74% [1] - The company posted revenues of $2.92 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.10%, but down from $2.94 billion year-over-year [2] - Over the last four quarters, JB Hunt has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - JB Hunt shares have declined approximately 19.2% since the beginning of the year, compared to a decline of 8.1% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.45 on revenues of $3.01 billion, and for the current fiscal year, it is $6.16 on revenues of $12.44 billion [7] - The estimate revisions trend for JB Hunt is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Transportation - Truck industry, to which JB Hunt belongs, is currently in the bottom 4% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact JB Hunt's stock performance [5]