J.B. Hunt (JBHT) Stock Falls On Soft Fourth-Quarter Guidance

Shares of J.B. Hunt Transport Services (NASDAQ:JBHT) were down significantly following tepid guidance for fourth-quarter 2017. The stock declined more than 3% on the news during early trading on Dec 28. However, the company recovered most losses during the course of the trading session, to close at $115.24, down 0.2% from closing price on Dec 27.

This trucking company anticipates earnings per share (on a reported basis) between 77 cents and 82 cents in the final quarter of 2017. The projection is inclusive of a charge to the tune of 11 cents for a reserve on a cash advance for the purchase of new trailing equipment from a manufacturer that will not meet delivery. Additionally, it includes an increase in reserves to the tune of 10 cents pertaining to certain insurance and claims.

Consequently, J.B. Hunt expects its bottom line to vary between 98 cents and $1.03 per share, excluding the above charges. The Zacks Consensus Estimate for the fourth quarter of 2017 is currently pegged at the highest point of the guided range.

Revenues in the current quarter are expected in the range of $1.9 billion to $ 2.0 billion. The Zacks Consensus Estimate for the same is currently pegged at the lowest point of the guided range. The company expects to unveil its fourth-quarter and full-year 2017 results on Jan 18.

Furthermore, this Lowell, Arkansas based company expects the tax overhaul (Tax Cuts and Jobs Act) to result in a one-time benefit in the current year. Effective tax rate in the final quarter of 2017 is estimated to be 37.6%. The much-anticipated tax bill, which became a law following President Trump’s signature on Dec 22, is expected to have minimal effect on the company’s fourth-quarter operating income that is estimated in the range of $145 million to $155 million.

J.B. Hunt Transport Services, Inc. Price

J.B. Hunt Transport Services, Inc. Price | J.B. Hunt Transport Services, Inc. Quote

Zacks Rank & Stocks to Consider

J.B. Hunt has a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader Transportation sector are Gol Linhas Aereas Inteligentes S.A. (NYSE:GOL) , LATAM Airlines Group S.A. (NYSE:LTM) and SkyWest, Inc. (NASDAQ:SKYW) . While Gol Linhas and LATAM Airlines sport a Zacks Rank #1 (Strong Buy), SkyWest carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Gol Linhas, LATAM Airlines and SkyWest have surged more than 200%, 70% and 46%, respectively, in a year.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>