On Friday, Stifel analysts updated their stance on J.B. Hunt Transport Services (NASDAQ:JBHT), increasing the stock's price target to $174 from the previous $161, while maintaining a Hold rating on the shares. According to InvestingPro data, analyst targets for JBHT range from $161 to $211, with the current stock trading near InvestingPro's calculated Fair Value.
J.B. Hunt recently disclosed their fourth quarter earnings for 2024, reporting earnings per share (EPS) of $1.53. This figure fell short of Stifel's $1.60 estimate as well as the Consensus estimate of $1.61. The earnings were impacted by an unexpected $16 million intangible impairment charge, which was equivalent to about $0.10 per share.
Despite the miss on earnings, revenue numbers were in line with what was anticipated. InvestingPro analysis shows that 10 analysts have revised their earnings downward for the upcoming period, with the company currently trading at a P/E ratio of 31.29x.
The company's intermodal segment, which is a significant part of J.B. Hunt's business, concluded 2024 with record volumes. However, analysts at Stifel noted that revenue was pulled down due to residual contract pricing from earlier in the year.
This element is expected to continue to pose challenges until the third quarter of 2025, with only incremental improvements projected. The company's overall revenue declined by 5.79% in the last twelve months, though InvestingPro data indicates the company maintains a strong financial health score and operates with a moderate level of debt.
The dedicated contract services segment is also experiencing a reduction in its fleet size, a trend that is likely to extend into the second quarter of 2025. Additionally, the company's management has provided guidance for the first quarter of 2025 that suggests operating income could see a 20-25% sequential decrease. This guidance reflects a more cautious stance compared to the more optimistic estimates that were prevalent in the market.
In light of these developments and the current market conditions, Stifel analysts have chosen to maintain a Hold rating on J.B. Hunt stock. The new price target of $174 reflects an adjustment based on the latest financial results and market expectations.
In other recent news, J.B. Hunt Transport Services has been the subject of several analyst adjustments. BMO Capital Markets reduced its price target from $205.00 to $200.00, while maintaining an Outperform rating, citing an upcoming positive turn in the freight cycle. Bernstein SocGen, however, lowered its price target from $190.00 to $180.00 following the company's Q4 earnings report, which revealed a 3.8% adjusted EPS beat. Despite this, the firm expressed concern over the Q1 EBIT guidance.
Stephens analyst Justin Long reaffirmed a price target of $205.00 and an Overweight rating, despite the company's Q4 earnings per share falling short of estimates. Goldman Sachs meanwhile maintained its Buy rating and $188.00 price target, expressing optimism for the latter half of the year despite a forecasted seasonal downturn in Q1. Lastly, Citi adjusted its price target to $193.00 from $204.00, but continued to recommend the stock as a Buy despite a significant projected decline in Q1 operating income.
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