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Bear of the Day: J.B. Hunt Transport (JBHT)

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J.B. Hunt Transport Services, Inc. (JBHT - Free Report) saw a decline in several of its key segments in the second quarter. This Zacks Rank #5 (Strong Sell) is expected to see declining earnings this year.

J.B. Hunt Transport provides supply chain solutions throughout North America, utilizing intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, final mile and more.

The company went public in 1983 and is a component of the Dow Jones Transportation Average.

A Beat in the Second Quarter

On July 15, J.B. Hunt reported its second quarter results and beat the Zacks Consensus by 2 cents. Earnings were $1.37 versus the consensus of $1.35.

Revenue rose 6% to $2.26 billion from $2.14 billion a year ago. Revenue growth was mainly due to a 19% in revenue producing trucks and an 8% increase in truck productivity in Dedicated Contract Services (DCS), partially offset by an 8% decline in volume in Intermodal (JBI), a 7% decline in volume in Integrated Capacity Solutions (ICS) and fewer tractors operating in Truck (JB) compared to the prior year.

Intermodal is its largest segment. Revenue fell 1% to $1.15 billion.

Dedicated Contract Services jumped 28% to $680 million while Integrated Capacity Solutions and Truck both fell. Integrated fell 4% to $334 million while Truck declined 2% to $99.6 million.

Shares Trail in 2019

It's been a tough year for the shares of J.B. Hunt Transport as they're up just 9.5% year-to-date, which trails the NASDAQ which is up 25% over the same period.



It is shareholder friendly, as it purchased $190 million in shares in the second quarter and has $181 million left, as of June 30, 2019, under its buyback authorization.

J.B. Hunt Transport also pays a dividend, currently yielding 1%.

But if you're looking for a trucking company that is expected to grow earnings this year, you might want to consider Old Dominion Freight Line (ODFL - Free Report) . It already reported and is a Zacks Rank #3 (Hold). Earnings are expected to rise 7.2% this year.

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