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J.B. Hunt (JBHT) Q2 Earnings: Disappointment in the Cards?

J.B. Hunt Transport Services Inc. JBHT is expected to release second-quarter 2017 results, on Jul 17.

Last quarter, the company delivered a positive earnings surprise of 5.75%. The transportation company’s earnings of 92 cents per share beat the Zacks Consensus Estimate of 87 cents. However, operating revenues of $1,629 million narrowly missed the Zacks Consensus Estimate of $1,631.4 million.

Let’s see how things shape up for this earnings season.

Factors at Play

J.B. Hunt has been struggling with declining demand for quite some time now. This is expected to hurt revenues in the second quarter. Furthermore, the bottom line may be hurt by higher operating expenses.

Shares of J.B. Hunt have underperformed the Zacks categorized Transportation - Truck industry in the last three months, based on the negatives. The stock has gained 3.15%, while the industry has increased 11.60%.

However the company’s efforts to reward shareholders through dividend payments and share repurchase are appreciative. In Apr 2017, the company’s board had cleared a new share buyback program authorizing the repurchase of an additional $500 million shares.

Earnings Whispers

Our proven model does not conclusively show that J.B. Hunt is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.

Unfortunately, this is not the case here as elaborated below.

Zacks ESP: The Earnings ESP for J.B. Hunt is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 92 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: J.B. Hunt carries a Zacks Rank #4 (Sell).

Please note that stocks with a Zacks Rank #4 or 5 (Sell rated) should never be considered before going into an earnings announcement, especially when the company is witnessing negative estimates revision.

Stocks to Consider

Investors interested in the broader transportation sector may consider some better-ranked stocks like American Airlines Group, Inc. AAL, Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK, as our model shows that these stocks have the right combination of elements to post an earnings beat in their upcoming release.

American Airlines has an Earnings ESP of +1.75% and a Zacks Rank #1. The company is expected to announce its second-quarter results on Jul 28. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allegiant Travel has an Earnings ESP of +6.76% and a Zacks Rank #3. The company will release its second-quarter results on Jul 26.

Alaska Air Group has an Earnings ESP of +2.45% and a Zacks Rank #2. The company will announce its second-quarter results on Jul 26.

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J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report
 
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