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Investing.com - Truist Securities raised its price target on J.B. Hunt Transport Services (NASDAQ:JBHT) to $145.00 from $140.00 while maintaining a Hold rating on the stock. According to InvestingPro data, analyst targets for JBHT range from $125 to $180, with 14 analysts recently revising their earnings expectations downward.
The adjustment follows J.B. Hunt’s second-quarter earnings report, which highlighted the company’s $100 million cost savings initiatives and early signs of margin stabilization within its JBI segment.
Despite these positive developments, Truist Securities noted that consolidated margin recovery for the transportation company "remains to be seen," suggesting caution about broader financial improvement across all business units.
The research firm slightly reduced its adjusted earnings per share estimates for J.B. Hunt to $5.70 for 2025 and $7.10 for 2026, down from previous projections of $5.74 and $7.20, respectively.
The modest price target increase reflects a balanced assessment of J.B. Hunt’s cost-cutting progress against the ongoing challenges in achieving comprehensive margin improvements across its operations.
In other recent news, J.B. Hunt Transport Services reported its second-quarter earnings, meeting analyst expectations with an earnings per share (EPS) of $1.31 and slightly surpassing revenue forecasts by $10 million, reaching $2.93 billion. Despite flat year-over-year revenue and a 4% decrease in operating income, the company managed to generate over $225 million in free cash flow. The Intermodal segment showed a 6% year-over-year volume growth, while the Integrated Capacity Solutions segment continued to improve its profitability, although it remains negative. Benchmark has reiterated its Buy rating with a $165 price target, while Stifel lowered its price target to $145, maintaining a Hold rating. Analysts have noted mixed results, with some segments facing challenges, such as pressure on revenue per load in the Truckload division and difficulties in the Final Mile business. J.B. Hunt has initiated cost-saving measures, identifying $100 million in annual costs to eliminate, which will impact 2026 and beyond. The company remains focused on improving margins and operational efficiency amidst inflationary pressures and trade policy uncertainties.
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