Keep On Truckin': What To Make Of J.B. Hunt's Q4 Preview

J B Hunt Transport Services Inc (NASDAQ: JBHT) pre-announced its fourth-quarter earnings per share and revenues on Thursday.

Reacting to the announcement, the stock shed 0.20 percent Thursday after being down about 3.6 percent intraday.

The Analyst

KeyBanc Capital Markets analyst Todd Fowler reiterated his Overweight rating on the shares of J.B. Hunt and upped the price target for the shares from $115 to $125.

The Thesis

The preliminary results were largely in line with KeyBanc's prior expectations when adjusting for non-operational items, but potentially below Street estimates for a slightly more robust holiday peak, Fowler said in Thursday note. (See the analyst's track record here.) 

"From a read-through perspective, we note intermodal typically peaks sooner relative to truck and has fewer transactional opportunities, though results may somewhat dampen broader expectations ahead of upcoming 4Q17 earnings," Fowler said. 

KeyBanc adjusted its estimates for J.B. Hunt to reflect slightly higher revenue and a lower expected tax rate into 2018. The firm's 2017 EPS estimate was lowered from $3.75 to $3.52, including a fourth-quarter estimate of 81 cents per share. For 2018, KeyBanc raised its EPS estimate from $4.40 to $5.24.

J.B. Hunt said it expects to release final fourth-quarter and full year earnings Jan. 18. 

The Price Action

J B Hunt shares are up close to 19 percent year-to-date.

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