J.B. Hunt Warns Near-Term Earnings Will Fall — Barclays Flags Higher Costs But Sees Freight Demand Inflection

• J.B. Hunt said at the Morgan Stanley Laguna Conference that it expects Q2 to Q3 earnings to fall 5% to 10%, according to TheFly.
• Barclays cut its target to $285 from $300 on J.B. Hunt Stock, citing higher transportation and driver recruitment costs.
• BofA also slashed its price target to $302 from $340 while keeping a ‘Buy’ rating.

J.B. Hunt Transport Services Inc. (JBHT) shares fell about 10% in Wednesday’s premarket trading after the company indicated that second-quarter to third-quarter earnings could decline 5% to 10% as higher costs weigh on profitability, according to The Fly. The comments came at the Morgan Stanley Laguna Conference.

Separately, Barclays lowered its price target on J.B. Hunt to $285 from $300 and maintained an ‘Equal Weight’ rating, citing near-term cost pressures. The firm said higher purchased transportation and driver recruitment costs are pressuring J.B. Hunt’s near-term earnings, per The Fly.

BoFA Cuts Target Price For JBHT

Bank of America also turned more cautious on J.B. Hunt’s near-term earnings outlook, cutting its price target to $302 from $340 while keeping a ‘Buy’ rating, according to The Fly. 

The firm said the company’s pre-announcement pointed to rapidly rising drayage costs and delays in fuel-surcharge recovery, which are expected to push Q3 earnings down 5% to 10%, implying earnings per share (EPS) of about $1.72 to $1.81.

Following the update, BofA lowered its Q3 EPS estimate by 18%, its 2026 estimate by 9%, and its 2027 estimate by 6%, according to The Fly.

JB Hunt Earnings Pressured by High Costs

Cost Pressures were visible in JB Hunt's Q2 results as purchased transportation costs increased across parts of the business, including a 54% year-over-year increase in the Integrated Capacity Solutions segment. The company also cited higher purchased transportation costs as a headwind in its Truckload business.

Still, the company posted strong Q2 growth, with revenue rising 19% year over year to $3.50 billion and operating income up 32% year over year to $259.5 million. Adjusted earnings per share (EPS) came in at $1.91, beating the FiscalAI consensus estimate.

Despite the weaker Q3 earnings outlook, Barclays said management remains bullish on a positive inflection in freight demand, particularly in intermodal, according to TheFly. J.B. Hunt is scheduled to report Q3 results on Oct. 15.

What Retail Investors Think About JB Hunt Stock

Meanwhile, retail sentiment around JBHT stock remained in the 'neutral' territory on Stocktwits. 

So far this year, JB Hunt shares have risen around 39%. In comparison, Vanguard Morningstar Small-Cap Value ETF (VBR), which holds JBHT stock, has risen over 12% during this period.

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