Shares of logistics and transportation services provider J.B. Hunt (JBHT) dropped about 3% in Tuesday’s after-hours trading session. The decline came after JBHT reported weaker-than-expected Q2 results, which were impacted by lower volumes, rising costs, and a challenging freight market.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Interestingly, analysts’ bearish views on JBHT stock, as shown in TipRanks’ Bulls Say, Bears Say tool, hinted at this weak performance. The analysts noted that a downturn in the U.S. freight market may continue to pressure its bottom-line numbers.
JBHT: Q2 Highlights
J.B. Hunt’s revenue declined by 6.4% to $2.93 billion and missed consensus estimates of $3.02 billion. This decline reflects a broader weakness in the U.S. freight market, with rates and volumes declining across trucking and domestic intermodal service offerings.
Furthermore, the company’s bottom line fell 28% to $1.32 per share, compared to $1.81 per share in the same quarter last year. Further, EPS fell short of analyst expectations of $1.48 per share. The year-over-year decline in sales and inflationary cost pressures impacted JBHT’s profits.
Is JBHT a Buy?
The company is making efforts to improve revenues and volume growth. It is also optimizing its cost structure to enhance margins. However, inflationary pressures, including rising insurance and labor costs, continue to pose challenges.
Overall, Wall Street is cautiously optimistic about the stock. It has a Moderate Buy consensus rating based on 10 Buys, six Holds, and one Sell. The analysts’ average price target on JBHT stock is $183.94, implying a 4.51% upside potential from current levels.
