J.B. Hunt Transport Services, a top-ranked trucking stock, reported fourth-quarter results that beat Wall Street estimates. JBHT stock edged higher Wednesday.
Estimates: FactSet analysts saw earnings jumping 40% to $2.02 per share with revenue up 20% to $3.28 billion.
Results: EPS rose 58% to $2.28 while revenue climbed 28% to $3.5 billion. That follows a Q3 EPS gain of 59% and revenue growth of 27%.
Intermodal volumes fell by 3% year-over-year as weather, train derailments and Covid-19 related labor shortages affected volume according to J.B. Hunt. Intermodal freight can be easily shipped via rail, ship and truck without having to repackage the cargo. Still, revenue per load, excluding fuel surcharge revenue, rose 22% on the year.
As the economy recovers, supply chains hammered by pandemic factors have been placed under increasing stress — putting trucking companies and other transport links in the spotlight. Covid-19 infections have worsened the industry's preexisting shortage of drivers. And the American Trucking Association, according to Bloomberg, estimates that only 50% to 60% of U.S. truckers are vaccinated vs. the 62.9% vaccination rate for the entire U.S.
J.B. Hunt is also getting investor attention for its environmental, social and governance practices. The company ranks highly on Dow Jones ESG data in air quality protection measures, greenhouse gas emissions, employee health and safety, and critical incident risk management.
The trucking company also announced Friday that it was teaming up with Alphabet's Waymo unit to be the launch customer for the Waymo Via, an autonomous platform for freight routes. The two companies ran a route in Texas last year and had 100% on-time pickup rates with no crashes or speeding events. Also on Friday, Barclays held its equal weight rating on J.B. Hunt shares, but boosted the stock's price target to 212, from 195.
JBHT Stock
Shares rose 0.1% to 200.65 after swinging up and down on the stock market today. Shares dipped 0.8% to 200.49 on Tuesday.
JBHT stock is currently holding support at its 10-week moving average, poised for a possible rebound from support. The stock is extended from a breakout above a flat base following its Q3 earnings.
IBD ranks J.B. Hunt number five in the Transportation-Truck group, which includes Old Dominion Freight Line and Saia. But most other leading truckers, including SAIA and ODFL stock have tumbled far below the 50-day line.
J.B. Hunt is on the IBD 50 list.
JBHT stock has a 96 out of a best-possible 99 Composite Rating. The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity, and relative price performance. Investors should focus on stocks with a Composite Rating of 90 or higher.
Follow Gillian Rich on Twitter for investing news and more.
