J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) shares are trading higher Thursday after the company reported better-than-expected earnings results for the third quarter. Multiple analyst firms also raised their respective price targets on the stock.
- JBHT is charging ahead with explosive momentum. Track the action here.
What To Know: J.B. Hunt reported earnings per share of $1.76, beating the consensus estimate of $1.47. In addition, the company reported sales of $3.05 billion, beating the consensus estimate of $3.02 billion, according to Benzinga Pro.
Third-quarter operating income rose 8% year-over-year to $242.7 million, driven by lower purchase transportation costs, improved productivity and structural cost reductions. Net earnings increased to $170.8 million from $152.1 million a year ago.
Intermodal segment revenue fell 2% to $1.52 billion as volume declined 1%, while operating income rose 12% due to network efficiency improvements. Dedicated Contract Services revenue increased 2% to $864 million with operating income up 9%. Truckload revenue climbed 10% to $190 million, offset by a 9% decline in operating income.
Final Mile Services revenue declined 5% to $206 million and operating income dropped 42% amid softer demand and higher insurance costs. Integrated Capacity Solutions posted revenue of $276 million, down 1% year-over-year.
The company repurchased approximately 1.6 million shares for $230 million during the quarter and had about $107 million remaining under its share buyback authorization as of Sept. 30.
Analyst Changes: Following the company’s earnings report, multiple analysts lifted price targets, which is helping propel shares higher on Thursday.
- Wells Fargo analyst Christian Wetherbee maintained an Overweight rating on JB Hunt and raised the price target from $160 to $170.
- BofA Securities analyst Ken Hoexter maintained a Buy rating on JB Hunt and raised the price target from $153 to $175.
- Citigroup analyst Ariel Rosa maintained a Buy rating on JB Hunt and raised the price target from $163 to $175.
- BMO Capital analyst Fadi Chamoun maintained an Outperform rating on JB Hunt and raised the price target from $172 to $180.
- JPMorgan analyst Brian Ossenbeck maintained an Overweight rating on JB Hunt and raised the price target from $170 to $176.
JBHT Price Action: At the time of writing, J.B. Hunt stock is up 19.2% higher at $165.49, according to data from Benzinga Pro.
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