What's in the Cards for J.B. Hunt (JBHT) in Q2 Earnings?

Core Viewpoint - J.B. Hunt Transport Services, Inc. is expected to report a decline in revenues for the second quarter of 2024, with various segments showing mixed performance and increased operating expenses impacting the bottom line [3][6][16]. Revenue Expectations - The Zacks Consensus Estimate for J.B. Hunt's second-quarter 2024 revenues is $3.09 billion, reflecting a 1.20% year-over-year decline [3]. - The Dedicated Contract Services segment is projected to generate revenues of $899.91 million, indicating a 1.4% growth from the previous year due to an increase in average trucks [4]. - Truckload revenues are estimated at $179.18 million, representing a 6.6% decline from the same quarter last year, attributed to decreased revenue per load and load volume [5]. - Intermodal revenues are expected to be $1.467 billion, showing a 1.4% decline year-over-year due to changes in freight mix and customer rates [13]. - Integrated Capacity Solutions revenues are estimated at $309.52 million, indicating a 9.9% decline from the previous year, impacted by lower rates and changes in customer freight mix [14]. - Final Mile Services revenues are projected at $238.03 million, reflecting a 6.3% increase from the previous year, supported by new contracts [15]. Earnings Expectations - The consensus estimate for J.B. Hunt's second-quarter 2024 earnings has been revised downward by 19.5% over the past 90 days to $1.52 per share, which is a 16.02% decline from the year-ago figures [16]. - The company has a history of disappointing earnings surprises, missing the Zacks Consensus Estimate in each of the last four quarters, with an average miss of 11.65% [12]. Financial Challenges - Higher net interest expenses are expected to negatively impact J.B. Hunt's bottom line due to rising interest rates [6]. - Increased operating expenses from high fuel costs, transportation costs, and employee-related expenses are also anticipated to affect profitability [6].