J.B. Hunt stock holds Buy rating at Benchmark after in-line Q2 results

Published 17/07/2025, 13:36
J.B. Hunt stock holds Buy rating at Benchmark after in-line Q2 results

Investing.com - J.B. Hunt Transport Services (NASDAQ:JBHT) maintained its Buy rating and $165.00 price target at Benchmark following its second-quarter earnings report that largely met expectations. According to InvestingPro data, the stock appears slightly undervalued at its current price of $151.44, though 11 analysts have recently revised their earnings expectations downward.

The transportation company reported second-quarter earnings per share of $1.31, matching Benchmark’s estimate and slightly above the FactSet consensus of $1.30. Core operations slightly exceeded analyst expectations, offset by higher interest and tax expenses. The company maintains a P/E ratio of 27.01 and generated $12.1 billion in revenue over the last twelve months, with a healthy gross profit margin of 18.8%.

The company’s Dedicated business segment outperformed estimates, while most other segments aligned with projected operating income. Management identified approximately $100 million in annual costs to eliminate, with benefits expected primarily in 2026 and beyond. InvestingPro subscribers can access over 10 additional exclusive insights about J.B. Hunt’s financial health and future prospects through the comprehensive Pro Research Report.

Intermodal load volume grew 6% year-over-year, surpassing expectations, while revenue per load excluding fuel was slightly better than anticipated. The operating margin for the Intermodal segment met projections despite sequential and year-over-year decreases in revenue per load.

Benchmark believes J.B. Hunt will experience significant operating leverage once pricing improves, citing excess costs carried through the current downturn, and projects mid-cycle earnings of approximately $9.00 per share.

In other recent news, J.B. Hunt Transport Services reported second-quarter earnings per share of $1.31, slightly exceeding consensus expectations of $1.30. The company achieved total revenue of $2.928 billion, which remained flat year-over-year but surpassed some analyst projections. BMO Capital highlighted J.B. Hunt’s $100 million cost savings plan, which they believe will positively impact future earnings. Truist Securities raised its price target for J.B. Hunt to $145, acknowledging the company’s cost-cutting measures and early signs of margin stabilization. However, they cautioned that full margin recovery across all business units has yet to be realized. Meanwhile, Benchmark reiterated a Buy rating with a $165 price target, noting strong performance in the Intermodal and Truckload segments. Stifel adjusted its price target to $145, maintaining a Hold rating and acknowledging mixed results across various business segments. TD Cowen also maintained a Hold rating, emphasizing the company’s ongoing cost management efforts. These developments reflect J.B. Hunt’s strategic initiatives amid a challenging market environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.