Markets

J.B. Hunt Transport (JBHT) Q3 Earnings: A Beat in Store?

We expect J.B. Hunt Transport Services Inc.JBHT to beat expectations when it reports third-quarter 2015 financial results on Oct 14.

In the last quarter, the company posted a negative 2.22% earnings surprise. Let's see how things are shaping up for this announcement.

Why a Likely Positive Surprise?

Our proven model shows that J.B. Hunt is likely to beat earnings because it has the right combination of two key ingredients.

Zacks ESP:Earnings ESP stands at +1.04% because the Most Accurate estimate is 97 cents while the Zacks Consensus Estimate is 96 cents. This serves as a meaningful and leading indicator of a likely positive earnings surprise.

Zacks Rank: J.B. Hunt currently has a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1, #2 or #3 have a significantly higher chance of beating earnings. Conversely, the Sell-rated stocks (Zacks Rank #4 and 5) should never be considered going into an earnings announcement.

The combination of J.B. Hunt's Zacks Rank #3 and +1.04% ESP makes us reasonably confident of an earnings beat.

What is Driving the Better-Than-Expected Earnings?

We are encouraged by the enhanced equipment velocity, accelerated fleet conversion and branch expansion. The company's Intermodal segment is expected to show solid growth on strong fundamentals and highway-to-rail conversion, while the Dedicated Contract Service segment holds strong growth opportunities stemming from the growing popularity of final mile services. Additionally, J.B. Hunt focuses on growth of the ICS business unit, expansion of the eastern intermodal network and development of new and existing customer base.

Other Stocks to Consider

Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter.

Delta Air Lines Inc. DAL with an Earnings ESP of +1.18% and a Zacks Rank #2 (Buy).

Union Pacific Corporation UNP with an Earnings ESP of +0.7% and a Zacks Rank #3.

Canadian Pacific Railway Limited CP with an Earnings ESP of +0.49% and a Zacks Rank #3.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

UNION PAC CORP (UNP): Free Stock Analysis Report

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

DELTA AIR LINES (DAL): Free Stock Analysis Report

CDN PAC RLWY (CP): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

JBHT DAL UNP CP

Other Topics

Earnings Stocks

Latest Markets Videos