QQQ   425.61 (-0.40%)
AAPL   182.32 (+0.42%)
MSFT   402.18 (-0.15%)
META   468.03 (-0.68%)
GOOGL   142.55 (+1.01%)
AMZN   168.59 (+0.90%)
TSLA   194.77 (+0.52%)
NVDA   674.72 (-2.85%)
NIO   5.97 (+0.17%)
AMD   164.29 (-0.84%)
BABA   75.58 (+3.34%)
T   17.01 (+0.59%)
F   12.15 (-0.82%)
MU   81.49 (+0.97%)
CGC   3.44 (-2.82%)
GE   149.08 (+0.31%)
DIS   107.68 (-1.61%)
AMC   4.57 (-1.93%)
PFE   27.67 (+0.29%)
PYPL   57.48 (-1.96%)
XOM   104.86 (+2.05%)
QQQ   425.61 (-0.40%)
AAPL   182.32 (+0.42%)
MSFT   402.18 (-0.15%)
META   468.03 (-0.68%)
GOOGL   142.55 (+1.01%)
AMZN   168.59 (+0.90%)
TSLA   194.77 (+0.52%)
NVDA   674.72 (-2.85%)
NIO   5.97 (+0.17%)
AMD   164.29 (-0.84%)
BABA   75.58 (+3.34%)
T   17.01 (+0.59%)
F   12.15 (-0.82%)
MU   81.49 (+0.97%)
CGC   3.44 (-2.82%)
GE   149.08 (+0.31%)
DIS   107.68 (-1.61%)
AMC   4.57 (-1.93%)
PFE   27.67 (+0.29%)
PYPL   57.48 (-1.96%)
XOM   104.86 (+2.05%)
QQQ   425.61 (-0.40%)
AAPL   182.32 (+0.42%)
MSFT   402.18 (-0.15%)
META   468.03 (-0.68%)
GOOGL   142.55 (+1.01%)
AMZN   168.59 (+0.90%)
TSLA   194.77 (+0.52%)
NVDA   674.72 (-2.85%)
NIO   5.97 (+0.17%)
AMD   164.29 (-0.84%)
BABA   75.58 (+3.34%)
T   17.01 (+0.59%)
F   12.15 (-0.82%)
MU   81.49 (+0.97%)
CGC   3.44 (-2.82%)
GE   149.08 (+0.31%)
DIS   107.68 (-1.61%)
AMC   4.57 (-1.93%)
PFE   27.67 (+0.29%)
PYPL   57.48 (-1.96%)
XOM   104.86 (+2.05%)
QQQ   425.61 (-0.40%)
AAPL   182.32 (+0.42%)
MSFT   402.18 (-0.15%)
META   468.03 (-0.68%)
GOOGL   142.55 (+1.01%)
AMZN   168.59 (+0.90%)
TSLA   194.77 (+0.52%)
NVDA   674.72 (-2.85%)
NIO   5.97 (+0.17%)
AMD   164.29 (-0.84%)
BABA   75.58 (+3.34%)
T   17.01 (+0.59%)
F   12.15 (-0.82%)
MU   81.49 (+0.97%)
CGC   3.44 (-2.82%)
GE   149.08 (+0.31%)
DIS   107.68 (-1.61%)
AMC   4.57 (-1.93%)
PFE   27.67 (+0.29%)
PYPL   57.48 (-1.96%)
XOM   104.86 (+2.05%)

J.B. Hunt Gets A Flat, Logistic Companies Come Into Focus 

J.B. Hunt Gets A Flat, Logistic Companies Come Into Focus 

Key Points

  • J.B. Hunt Transport Services posted a miss on the top and bottom lines for Q4 2022. 
  • The miss was driven by weakness in the Integrated Capacity Solutions segments. 
  • Other truckers may still outperform their consensus estimates because of strength in core segments. 
  • 5 stocks we like better than J.B. Hunt Transport Services

J.B. Hunt’s NASDAQ: JBHT Q4 results confirm a trend that has recently developed within the trucking and logistics industry. The analysts began warming up to the truckers but their interest was centered on logistic companies like GXO Logistics NYSE: GXO and truckers like Knight-Swift Transportation NYSE: KNX versus the larger, more integrated operations.

J.B. Hunt even got a little bit of love, but it appears to have been misplaced. The company missed the top and bottom lines due to weakness in the Integrated Capacity Solutions that more than offset strengths in other areas.

What this means is that there is still demand for trucking and freight services at all levels but not so much that those in need have to hunt to find it. The takeaway is that rotation within the sector may pick up momentum, and J.B. Hunt may move lower while other truckers move higher.

J.B. Hunt, Growth Slows Margins Shrink

J.B. Hunt had an OK quarter and produced both revenue growth and solid earnings, but there are numerous issues with the numbers that will weigh on share prices in the near term. The first is revenue; the $3.65 billion in net revenue is up 4% versus last year but down sequentially and it missed the Marketbeat.com analyst's consensus estimate by 370 basis points. 

Worse, on an x-fuel surcharge basis, the company’s revenue fell by 3%, and the fuel surcharges could begin to shrink over the next quarter or so.

On a segment basis, all segments saw top-line growth except Integrated Capacity Solutions, which declined by 33%. The company’s best-performing sector was the Dedicated Contract Services which reflects an increase in demand for guaranteed services that may have sapped strength from the ICS segment. 


The good news for truckers like Knight-Swift and logistics companies like GXO Logistics and XPO Logistics NYSE: XPO is the 11% increase in Intermodal, the 24% increase in Dedicated Contract Services, the 6% increase in JBT (truckload) and the 15% increase in final mile services.

These gains were aided by a 14% increase in active trucks in the DCS segment, a 6% increase in load volume for the JBT segment and acquisitions coupled with customer growth in the Final Mile segment. 

The earnings, however, are where the truly bad news lay. The company’s GAAP EPS came in at $1.92 or down 16% versus last year and 22% worse than consensus. The company doesn’t provide guidance but, the decline in margin and weakness in ICS suggests Q1 2023 and perhaps the 1st half of the year could be weaker than the current consensus. 

Knight-Swift Reports Next Week 

Knight-Swift is the trucker with the firmest sentiment, and it reports on January 25th. The current consensus is for sequential and YOY declines in revenue and earnings that may be underestimating the business.

The results from JBHT certainly suggest that truckload, LTL, logistics and intermodal segments at Knight-Swift could have grown over the past 12 months. However, the latest shout-out from analysts comes from Credit Suisse and may foreshadow problems for this market. Credit Suisse still rates KNX stock at Outperform with a price target in-line with the consensus estimate, but they removed it from the Top of the Crop list. 

Turning to the charts, shares of KNX and GXO have been lagging behind the transportation industry since the pandemic bottom. That has the 2 in position to rebound in 2023, assuming they exhibit the expected strength in earnings. All 3 stocks are rated a Moderate Buy but GXO has the most upside expectation for gains at 20% compared to about 12% for JBHT and 8% for KNX. JBHT is down about 2.0% in premarket action. 

J.B. Hunt Gets A Flat, Logistic Companies Come Into Focus 

→ 66,000% upside on tiny biotech? (From Behind the Markets) (Ad)

Should you invest $1,000 in J.B. Hunt Transport Services right now?

Before you consider J.B. Hunt Transport Services, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and J.B. Hunt Transport Services wasn't on the list.

While J.B. Hunt Transport Services currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

These 7 Stocks Will Be Magnificent in 2024 Cover

With average gains of 150% since the start of 2023, now is the time to give these stocks a look and pump up your 2024 portfolio.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
GXO Logistics (GXO)
4.582 of 5 stars
$53.56-0.7%N/A28.04Buy$71.09
XPO (XPO)
4.1844 of 5 stars
$119.23+0.8%N/A74.06Moderate Buy$102.90
Knight-Swift Transportation (KNX)
2.71 of 5 stars
$57.66+1.5%0.97%43.35Moderate Buy$63.00
J.B. Hunt Transport Services (JBHT)
4.6212 of 5 stars
$203.18+1.7%0.85%29.15Moderate Buy$206.37
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


Featured Articles and Offers

Search Headlines: