Earnings Performance - J B Hunt Transport Services reported Q4 2024 EPS of $1 53, missing the Zacks Consensus Estimate of $1 62, leading to a double-digit stock decline in aftermarket trading [1] - The bottom line increased 4 1% year-over-year [1] - Total operating revenues of $3 15 billion narrowly beat the Zacks Consensus Estimate of $3 13 billion but declined 4 8% year-over-year due to lower fuel surcharge revenues and yield pressure in the Intermodal segment [2] - Total operating income increased 2% year-over-year to $207 million [2] Segment Performance Intermodal Division - Generated quarterly revenues of $1 6 billion, down 2% year-over-year, slightly above the estimate of $1 57 billion [3] - Intermodal volume increased 5% year-over-year, with transcontinental network loads up 4% and eastern network loads up 6% [3] - Operating income decreased 10% year-over-year due to lower yields [3] Dedicated Contract Services - Revenues fell 5% year-over-year to $839 million, below the estimate of $850 5 million, driven by a 4% decline in average trucks and a 1% reduction in productivity [4] - Productivity, excluding fuel surcharge revenues, increased 2% year-over-year due to contracted indexed-based price escalators [4] - Segmental operating income increased 5% year-over-year [4] Integrated Capacity Solutions - Revenues decreased 15% year-over-year to $308 million, slightly above the estimate of $305 5 million [5] - Segmental volumes decreased 22% year-over-year, while revenue per load increased 9% year-over-year due to higher contractual and transactional rates and changes in customer freight mix [5] - Segmental operating loss was $21 8 million, an improvement from the $24 9 million loss in Q4 2023 [6] - ICS carrier base decreased 10% year-over-year due to changes in carrier qualification requirements [6] Truckload - Revenues fell 7% year-over-year to $182 million, below the estimate of $195 3 million [6] - Excluding fuel surcharge revenues, segmental revenues fell 3% due to flat load volume and a 2% decline in gross revenue per load [6] - Segmental operating income increased to $8 6 million from a modest operating loss in Q4 2023 [7] Final Mile Services - Revenues fell 6% year-over-year to $228 million, below the estimate of $240 3 million, due to weak demand across end markets [8] - Operating income increased 7% year-over-year despite higher purchased transportation and insurance-related costs [8] Liquidity and Share Buybacks - J B Hunt ended 2024 with cash and cash equivalents of $47 million, down from $53 3 million at the end of 2023 [9] - Long-term debt decreased to $977 7 million from $1 33 billion at the end of 2023 [9] - In Q4 2024, the company repurchased approximately 489,000 shares for $86 million, with $882 million remaining under its share repurchase authorization as of Dec 31, 2024 [9] Zacks Rank and Peer Comparison - J B Hunt currently carries a Zacks Rank 4 (Sell) [11] - Investors may consider Alaska Air Group (ALK), which sports a Zacks Rank 1 (Strong Buy) and has delivered an average earnings beat of 23 2% over the past four quarters, with shares surging 99% in the past year [12] - C H Robinson Worldwide (CHRW) carries a Zacks Rank 2 (Buy), with a 1 3% upward revision in the Zacks Consensus Estimate for 2025 earnings and an average earnings beat of 10 3% over the past four quarters, with shares rising 21% in the past year [13]

Financial Data and Key Metrics Changes - For Q4 2024, consolidated revenue declined by 5% year-over-year, operating income increased by 2%, and diluted earnings per share rose by 4% [17] - For the full year 2024, consolidated revenue decreased by 6%, operating income fell by 16%, and diluted EPS dropped by 20% [19] - The company faced insurance-related charges of $53.4 million in Q4 2023 and intangible asset impairment charges of $16 million in Q4 2024, impacting overall financial performance [18] Business Line Data and Key Metrics Changes - The Intermodal business experienced a record peak season with total volume up 5% year-over-year, setting a new quarterly record for Intermodal volume [55] - The dedicated business showed resilience with strong visibility for future growth, while the brokerage business is still under progress [12][39] - The Final Mile business faced muted demand for big and bulky products, particularly in furniture and appliances [38] Market Data and Key Metrics Changes - The freight environment remains challenging, with inflationary cost pressures expected to continue, particularly in insurance premiums and labor costs [20] - Despite the challenging market, the company is positioned to leverage its capacity and service levels to capture new customers [14][30] Company Strategy and Development Direction - The company is focused on operational excellence and scaling investments to drive long-term growth and improve returns on capital [10] - Strategic investments include acquiring Intermodal assets from Walmart, which are expected to enhance future earnings potential [10] - The company aims to repair and improve financial performance while maintaining a focus on long-term value creation for shareholders [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to leverage its brand and service execution to improve margins and returns on capital [11] - The company anticipates a gradual recovery from the freight recession, with a focus on growing and repairing margins in 2025 [13][61] - Management highlighted the importance of customer relationships and the need to ensure appropriate pricing for services provided [31][85] Other Important Information - The capital expenditure plan for 2025 is projected to be between $700 million and $900 million, reflecting growth and replacement needs [24] - The company plans to continue supporting its dividend, which has increased for 20 consecutive years, and will opportunistically repurchase stock [25][26] Q&A Session Summary Question: Clarification on first quarter commentary regarding sequential decline in operating profit - Management confirmed that the sequential decline in operating income is expected across the entire business, consistent with normal seasonality [70] Question: Discussion on CapEx commentary and underlying assumptions - The CapEx range for 2025 is influenced by replacement needs and growth in dedicated sales, with a significant portion allocated for power replacement [76] Question: Steps to improve returns on capital and margins without market recovery - Management emphasized focusing on cost control, balancing network loads, and engaging customers to communicate value [81][85] Question: Guidance on Dedicated business performance and growth expectations - Management acknowledged known losses but expressed confidence in returning to net fleet growth and improving retention rates [90][92] Question: Insights on Intermodal volumes and future growth potential - Management highlighted opportunities for volume growth, particularly in the Eastern network, as the truck market shifts [139]

Market Performance - Major indexes took a breather after yesterday's significant gains, with the Dow down -0.16%, the S&P 500 down -0.12%, and the Nasdaq down -0.89% [1] - The small-cap Russell 2000 was the only index to gain, up +0.40% [1] Economic Indicators - Weekly Jobless Claims and Retail Sales remained tame, while Imports and Exports saw a slight increase [2] - The Philly Fed manufacturing index showed its first significant improvement in over three years [2] - Business Inventories for November increased by +0.1%, in line with expectations [3] - The Homebuilder Confidence Index for January came in at 47, the highest since April of last year [3] Bond Yields - The 10-year yield cooled to +4.615%, down from +4.763% on Tuesday, the highest in 15 months [4] - The 2-year yield settled at +4.238%, between September's +3.548% and last April's +5.046% [4] Company Performance - J B Hunt missed Q4 earnings estimates by $0 10, reporting $1 53 per share, despite revenues meeting the $3 15 billion consensus [5] - The company's Intermodal business improvements were offset by declines in Revenue per Load and Dedicated Services [5] - Shares of J B Hunt dropped by -1% in late trading [5] Upcoming Economic Data - Housing Starts and Building Permits for December are expected to show modest gains and slight declines, respectively [7] - Industrial Production is expected to swing to +0 2% from -0 1%, while Capacity Utilization is expected to rise to +77 0% from +76 8% [8]

For the quarter ended December 2024, JB Hunt (JBHT) reported revenue of $3.15 billion, down 4.8% over the same period last year. EPS came in at $1.53, compared to $1.47 in the year-ago quarter.The reported revenue represents a surprise of +0.54% over the Zacks Consensus Estimate of $3.13 billion. With the consensus EPS estimate being $1.62, the EPS surprise was -5.56%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Earnings Performance - JB Hunt reported quarterly earnings of $1 53 per share missing the Zacks Consensus Estimate of $1 62 per share representing a -5 56% earnings surprise [1] - The company's earnings of $1 53 per share increased from $1 47 per share a year ago [1] - In the previous quarter JB Hunt delivered a positive earnings surprise of 4 93% with actual earnings of $1 49 per share against an estimate of $1 42 per share [1] - Over the last four quarters the company surpassed consensus EPS estimates only once [2] Revenue Performance - JB Hunt posted revenues of $3 15 billion for the quarter ended December 2024 surpassing the Zacks Consensus Estimate by 0 54% [2] - This revenue figure represents a decline from the year-ago revenues of $3 3 billion [2] - The company has topped consensus revenue estimates twice over the last four quarters [2] Stock Performance and Market Comparison - JB Hunt shares have gained approximately 9 3% since the beginning of the year compared to the S&P 500's gain of 1 2% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook and Estimate Revisions - The current consensus EPS estimate for the coming quarter is $1 41 on $3 01 billion in revenues [7] - For the current fiscal year the consensus EPS estimate is $7 21 on $12 78 billion in revenues [7] - Ahead of the earnings release the estimate revisions trend for JB Hunt was unfavorable resulting in a Zacks Rank 4 (Sell) indicating potential underperformance in the near future [6] Industry Context - JB Hunt belongs to the Zacks Transportation - Truck industry which is currently in the bottom 16% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - Heartland Express (HTLD) another company in the same industry is expected to report a quarterly loss of $0 04 per share for the quarter ended December 2024 representing a year-over-year change of -166 7% [9] - The consensus EPS estimate for Heartland Express has been revised 50% lower over the last 30 days [9] - Heartland Express' revenues are expected to be $254 84 million down 7 5% from the year-ago quarter [9]

Financial Performance - J B Hunt's Q4 2024 revenue was $315 billion, a 5% decrease compared to Q4 2023[8] - Excluding fuel surcharge, Q4 2024 revenue was $278 billion, down 2%[8] - Operating income for Q4 2024 increased by 2% to $2070 million[8] - Diluted EPS for Q4 2024 rose by 4% to $153, compared to $147 in Q4 2023[8] Segment Performance - Intermodal (JBI) revenue decreased by 2% to $160 billion, with operating income down 10% to $1170 million[8] - Dedicated Contract Services (DCS) revenue decreased by 5% to $839 million, but operating income increased by 5% to $903 million[8] - Integrated Capacity Solutions (ICS) revenue decreased by 15% to $308 million, with an operating loss of $218 million, an improvement from the $249 million loss in Q4 2023[8] - Final Mile Services (FMS) revenue decreased by 6% to $228 million, while operating income increased by 7% to $132 million[9] - Truckload (JBT) revenue decreased by 7% to $182 million, but operating income improved to $86 million from a loss of $39 thousand in Q4 2023[9] Intermodal (JBI) Analysis - Intermodal volume increased by 5% compared to the same period in 2023[18] - Revenue per load decreased by 6%, primarily due to changes in freight mix, customer rates, and fuel surcharge revenue[18] Dedicated Contract Services (DCS) Analysis - DCS revenue decreased by 5%, driven by a 4% decline in average trucks and a 1% decline in productivity[29] - Customer retention rates are approximately 90%, reflecting downsizing of fleets and account losses[29] Integrated Capacity Solutions (ICS) Analysis - ICS revenue decreased by 15%, with overall segment volume down 22%[39] - Revenue per load increased by 9% due to higher contractual and transactional rates and changes in customer freight mix[39] - Contractual volume represented approximately 63% of the total load volume and 63% of the total revenue[39] Final Mile Services (FMS) Analysis - FMS revenue declined 6%, primarily driven by general weakness in demand across many of the end markets served[50]

Financial Performance - Fourth Quarter 2024 total operating revenue was $3.15 billion, a decrease of 5% compared to $3.30 billion in Q4 2023[4] - Fourth Quarter 2024 net income was $155.5 million, or diluted earnings per share of $1.53, up 4% from $153.5 million and $1.47 in Q4 2023[3][7] - Full Year 2024 revenue totaled $12.09 billion, down 6% from the previous year, with operating income decreasing 16% to $831 million[7] - Total operating revenues for 2024 were $12,087,204, a decrease of 5.8% from $12,829,665 in 2023[31] - Operating income for 2024 was $831,225, down 16.3% from $993,196 in 2023, representing 6.9% of total revenues[31] Segment Performance - Intermodal (JBI) segment revenue decreased 2% year-over-year, despite a 5% increase in volume, primarily due to a 6% decrease in revenue per load[8] - Integrated Capacity Solutions (ICS) segment revenue fell 15% to $308 million, with a 22% decline in overall segment volume[12] - Dedicated Contract Services (DCS) revenue decreased 5%, with a 4% decline in average trucks and a 1% decline in productivity[10] - Truckload (JBT) revenue decreased 7%, with a 2% decrease in revenue per load and flat load volume year-over-year[18] - Intermodal revenue for 2024 was $5,956,092, accounting for 49% of total revenue, compared to $6,207,461 (48%) in 2023[34] - Integrated Capacity Solutions segment reported a revenue decrease to $1,141,475 (9% of total) from $1,390,141 (11% of total) in 2023[34] Operational Metrics - Average revenue per load in the Intermodal segment decreased to $2,849 in 2024 from $3,035 in 2023[38] - The number of loads in the Dedicated segment decreased to 3,985,221 in 2024 from 4,274,677 in 2023[38] - The average effective trailing equipment usage in the Intermodal segment increased to 104,103 in 2024 from 99,374 in 2023[38] - The marketplace for J.B. Hunt 360 revenue decreased significantly to $395.8 million in 2024 from $765.6 million in 2023[38] Expenses and Liabilities - Operating expenses for 2024 totaled $11,255,979, representing 93.1% of total revenues, compared to 92.3% in 2023[31] - Total debt outstanding as of December 31, 2024, was $1.48 billion, down from $1.58 billion a year earlier[20] - Current liabilities decreased from $1,678,040,000 in 2023 to $1,452,501,000 in 2024, a reduction of 13.5%[41] - Long-term debt decreased from $1,326,107,000 in 2023 to $977,702,000 in 2024, a decrease of 26.3%[41] Shareholder Actions - The company repurchased approximately 489,000 shares for about $86 million in Q4 2024, with $882 million remaining under its share repurchase authorization[21] - The actual shares outstanding decreased from 103,220,000 in 2023 to 100,555,000 in 2024, a reduction of 2.6%[43] Asset Management - Total current assets increased from $1,733,724,000 in 2023 to $1,911,303,000 in 2024, representing an increase of 10.3%[41] - Net cash provided by operating activities decreased from $1,744,618,000 in 2023 to $1,483,156,000 in 2024, a decline of 15.0%[43] - Book value per share increased from $39.76 in 2023 to $39.92 in 2024, reflecting a growth of 0.4%[43] - Net capital expenditures significantly decreased from $1,600,215,000 in 2023 to $674,406,000 in 2024, a decline of 57.9%[43] - Total stockholders' equity increased from $4,014,505,000 in 2023 to $4,103,758,000 in 2024, an increase of 2.2%[41] - Accounts receivable increased from $1,224,166,000 in 2023 to $1,334,912,000 in 2024, a rise of 9.0%[41] - Cash and cash equivalents increased from $46,983,000 in 2023 to $53,344,000 in 2024, an increase of 13.0%[41]

Company Overview - J B Hunt Transport Services is a North American trucking and logistics company established in 1961 [1] - The company operates multiple business lines including truckload (TL), dedicated contract services, and Intermodal & Other final mile services [1] - J B Hunt Transport Services is one of the largest companies in its industry [1] Analyst Background - The analyst has over three years of experience in finance and consulting [1] - The analyst specializes in identifying value in North American public equities that lack significant market hype [1] - Professional experience includes corporate credit risk analysis, government entity consulting, and venture capital analysis in the med-tech space [1] Investment Approach - The analyst focuses on stocks that may need a "mulligan" or second chance, particularly those experiencing a sluggish quarter with downward market sentiment [1] - The analyst's investment strategy is not influenced by short-term market fluctuations [1]

Company Overview - J B Hunt Transport Services Inc (NASDAQ: JBHT) is one of the largest transportation and logistics companies in the US [1] - The company operates five main segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT) [1] - Intermodal is the largest segment of the company [1] Research Principles - The mission of Grassroots Trading is to provide objective, unbiased, and balanced research backed by solid data [1] - The focus is on small- to mid-cap companies, offering compelling investment opportunities often overlooked by investors [1] - The research also periodically identifies potential opportunities in large- and mega-cap companies to provide comprehensive coverage of the equity markets [1]

Wall Street analysts expect JB Hunt (JBHT) to post quarterly earnings of $1.64 per share in its upcoming report, which indicates a year-over-year increase of 11.6%. Revenues are expected to be $3.15 billion, down 4.6% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 4.9% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a ...