We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
JB Hunt (JBHT) Down 4.8% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for JB Hunt (JBHT - Free Report) . Shares have lost about 4.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is JB Hunt due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat at J.B. Hunt in Q4
J.B. Hunt’s fourth-quarter 2021 earnings of $2.28 per share, surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line jumped 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.
Quarterly operating income (on a reported basis) climbed 55.3% to $322.5 million despite network fluidity challenges. Operating expenses escalated 25.5%, primarily due to rising wages and truck purchase transportation costs.
Segmental Highlights
Intermodal division generated quarterly revenues of $1.57 billion, up 26% year over year. Revenue per load climbed 30% in the quarter under discussion. Volumes decreased 3% year over year. While Eastern network loads inched up 1%, transcontinental loads declined 5% from the year-ago period. Despite strong demand for intermodal capacity, volumes were affected by network fluidity challenges due to bad weather, derailments and coronavirus-induced labor shortages, among other factors. Operating income soared 76% year over year to $195.3 million, driven by higher customer rate and cost-recovery efforts.
Dedicated Contract Services segment revenues rose 25% from the year-ago period to $712 million, owing to fleet productivity improvement and increase in average revenue-producing trucks. The company’s fleet at the end of the quarter had 1,778 more revenue-producing trucks (on a net basis) versus a year ago. However, operating income decreased 6% to $72.6 million.
Integrated Capacity Solutions revenues increased 26% year over year to $739 million. Segmental volumes dipped 1% from the year-ago period despite truckload volumes increasing 3%. Revenue per load climbed 27% owing to favorable customer freight mix, and higher contractual and spot rates. The segment’s operating income was $21.2 million in the reported quarter compared with $5.6 million in the fourth quarter of 2020.
Final Mile Services revenues ascended 4% year over year to $222 million due to the addition of multiple customer contracts over the last year. The segment’s operating income was $7.4 million in the reported quarter, up 35%. Higher revenues from multiple new customer contracts boosted segmental operating income.
Truckload revenues soared 85% to $259 million. Excluding fuel surcharge revenues, segmental revenues rose 79% year over year due to 55% increase in revenue per load (excluding fuel surcharge revenue) and 15% rise in load count. At the end of the fourth quarter, total tractors and trailers were 2,235 and 11,172, respectively, compared with the year-ago quarter’s figures of 1,769 and 8,567. Truckload operating income skyrocketed more than 200% to $25.9 million on the back of increased load counts and revenue per load.
Liquidity & Buyback
J.B. Hunt exited the fourth quarter with cash and cash equivalents of $355.55 million compared with $313.30 million at the end of 2020. Long-term debt was $945.26 million compared with $1.31 billion at 2020-end. Net capital expenditures at the end of 2021 amounted to $877.02 million compared with $600.77 million at the end of 2020.
During the reported quarter, J.B. Hunt repurchased around 76,000 shares for approximately $15 million. The trucking company had approximately $351 million remaining under its share repurchase authorization at the end of the fourth quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 8.16% due to these changes.
VGM Scores
Currently, JB Hunt has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise JB Hunt has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
JB Hunt (JBHT) Down 4.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for JB Hunt (JBHT - Free Report) . Shares have lost about 4.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is JB Hunt due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat at J.B. Hunt in Q4
J.B. Hunt’s fourth-quarter 2021 earnings of $2.28 per share, surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line jumped 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.
Quarterly operating income (on a reported basis) climbed 55.3% to $322.5 million despite network fluidity challenges. Operating expenses escalated 25.5%, primarily due to rising wages and truck purchase transportation costs.
Segmental Highlights
Intermodal division generated quarterly revenues of $1.57 billion, up 26% year over year. Revenue per load climbed 30% in the quarter under discussion. Volumes decreased 3% year over year. While Eastern network loads inched up 1%, transcontinental loads declined 5% from the year-ago period. Despite strong demand for intermodal capacity, volumes were affected by network fluidity challenges due to bad weather, derailments and coronavirus-induced labor shortages, among other factors. Operating income soared 76% year over year to $195.3 million, driven by higher customer rate and cost-recovery efforts.
Dedicated Contract Services segment revenues rose 25% from the year-ago period to $712 million, owing to fleet productivity improvement and increase in average revenue-producing trucks. The company’s fleet at the end of the quarter had 1,778 more revenue-producing trucks (on a net basis) versus a year ago. However, operating income decreased 6% to $72.6 million.
Integrated Capacity Solutions revenues increased 26% year over year to $739 million. Segmental volumes dipped 1% from the year-ago period despite truckload volumes increasing 3%. Revenue per load climbed 27% owing to favorable customer freight mix, and higher contractual and spot rates. The segment’s operating income was $21.2 million in the reported quarter compared with $5.6 million in the fourth quarter of 2020.
Final Mile Services revenues ascended 4% year over year to $222 million due to the addition of multiple customer contracts over the last year. The segment’s operating income was $7.4 million in the reported quarter, up 35%. Higher revenues from multiple new customer contracts boosted segmental operating income.
Truckload revenues soared 85% to $259 million. Excluding fuel surcharge revenues, segmental revenues rose 79% year over year due to 55% increase in revenue per load (excluding fuel surcharge revenue) and 15% rise in load count. At the end of the fourth quarter, total tractors and trailers were 2,235 and 11,172, respectively, compared with the year-ago quarter’s figures of 1,769 and 8,567. Truckload operating income skyrocketed more than 200% to $25.9 million on the back of increased load counts and revenue per load.
Liquidity & Buyback
J.B. Hunt exited the fourth quarter with cash and cash equivalents of $355.55 million compared with $313.30 million at the end of 2020. Long-term debt was $945.26 million compared with $1.31 billion at 2020-end. Net capital expenditures at the end of 2021 amounted to $877.02 million compared with $600.77 million at the end of 2020.
During the reported quarter, J.B. Hunt repurchased around 76,000 shares for approximately $15 million. The trucking company had approximately $351 million remaining under its share repurchase authorization at the end of the fourth quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 8.16% due to these changes.
VGM Scores
Currently, JB Hunt has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise JB Hunt has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.