J.B. Hunt (JBHT) To Report Q1 Earnings: What's In Store?
Zacks Investment Research | Apr 09, 2019 09:50PM ET
J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is expected to report first-quarter 2019 results on Apr 15.
Last reported quarter, the company delivered an earnings surprise of 19.6%. Quarterly revenues also surpassed estimates. While the bottom line declined year over year on increased costs from the arbitration with BNSF Railway Company, the top line improved year over year owing to a strong segmental performance.
However, things don’t look up for the company this soon-to-be-reported quarter. As an evidence the Zacks Consensus Estimate for first-quarter earnings has been revised 3.8% downward in the last 60 days.
Factors Likely at Play
High operating expenses due to increased driver wages have been hampering bottom-line growth for quite some time now and the first quarter is likely to be no exception. The increased wages are primarily aimed at retaining drivers amid their scarcity.
Additionally, rising operating costs might lead to deterioration in operating ratio (operating expenses as a percentage of revenues), a key measure of operational efficiency.
However, J.B. Hunt is benefiting from high freight rates on the back of strong shipping demand. Moreover, an impressive segmental performance is likely to boost the company’s top line.
The Zacks Consensus Estimate for Dedicated Contract Services segment revenues in the first quarter stands at $607 million, higher than $494 million reported in the year-ago period.
The consensus mark for Integrated Capacity Solutions revenues is pegged at $310 million, above the reported figure of $296 million reported in the first quarter of 2018.
The same for intermodal revenues stands at $1,210 million compared with $1,070 million reported in the prior-year quarter.
Meanwhile, the consensus estimate for truck revenues is pegged at $106 million, up from $93 million reported in the year-earlier period.
Further, the company’s Cory 1st Choice Home Delivery acquisition completed this February, which has strengthened its Final Mile operations, is likely to bolster results in the first quarter.
J.B. Hunt Transport Services, Inc. Price and EPS Surprise
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