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J.B. Hunt (JBHT) Q2 Earnings: Disappointment in Store?

J.B. Hunt Transport Services Inc.JBHT is set to release second-quarter 2016 results, before the market opens on Jul 18.

In the last quarter, the company recorded a positive 3.53% earnings surprise. Let's see how things are shaping up for this announcement.

Factors at Play this Quarter

Lower fuel surcharge continue to impact the company's annual core price increase, thus affecting revenues. Additionally, U.S. truckload volumes have been on a decline which does not bode well for the company. J.B. Hunt faces stiff competition from truckload carriers such as YRC Worldwide Inc. YRCW , Old Dominion Freight Line ODFL and Conway Inc. Thus, earnings could be impacted by unfavorable macroeconomic developments and intensifying competition.

However, the company's strong product portfolio is encouraging. The company expects 2016 revenues to grow in the band of 9% to 12% compared to 2015 levels. Its intermodal and Dedicated Contracts Segment ("DCS") should perform well going forward.

Earnings Whispers

Our proven model does not conclusively show that J.B. Hunt is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.

Zacks ESP: The Most Accurate estimate stands at 96 cents while the Zacks Consensus Estimate is poised at 97 cents. Hence, the ESP is -1.03%.

Zacks Rank: J.B. Hunt carries a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions as is the case with J.B. Hunt.

HUNT (JB) TRANS Price and EPS Surprise

HUNT (JB) TRANS Price and EPS Surprise | HUNT (JB) TRANS Quote

Stocks to Consider

Here is a transportation stock you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.

United Parcel Services UPS with an Earnings ESP of +2.11% and a Zacks Rank #2.

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HUNT (JB) TRANS (JBHT): Free Stock Analysis Report

OLD DOMINION FL (ODFL): Free Stock Analysis Report

YRC WORLDWD INC (YRCW): Free Stock Analysis Report

UTD PARCEL SRVC (UPS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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