REFILE-Freight shipping firm J.B. Hunt Q2 revenue beats estimates

Overview

• J.B. Hunt Q2 revenue at $2.93 bln, beating analyst expectations, per LSEG data

• Q2 EPS flat at $1.31, missing analyst expectations, per LSEG data

• Operating income down 4% to $197.3 mln, driven by higher expenses

• Co repurchased 2.4 mln shares for $319 mln in Q2

Outlook

• Company expects 2025 annual tax rate between 24.0% and 25.0%

Result Drivers

• INTERMODAL VOLUME - 6% increase in Intermodal loads driven by strong demand in Eastern network, despite market volatility, per company statement

• TRUCKLOAD GROWTH - 13% increase in Truckload (JBT) loads contributed to a 5% revenue rise, despite a 4% decline in revenue per load

• COST PRESSURES - Operating income decreased 4% due to higher casualty and group medical claims expenses, and increased driver wages and equipment costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy"

• Wall Street's median 12-month price target for J B Hunt Transport Services Inc is $155.00, about 1.8% above its July 14 closing price of $152.20

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nBw30dk7ra