J.B. Hunt, P.A.M. expected to post Q4 earnings increase

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by Jeff Della Rosa ([email protected]) ago 0 views 

The trucking industry experienced a “relatively normal” peak season in the fourth quarter of 2024 that’s expected to provide momentum for rates to rise throughout 2025, analysts said.

Analyst Daniel Imbro, senior associates Joe Enderlin and Brady Lierz, and associate Reed Seay, all of Little Rock-based Stephens Inc., recently released a combined fourth-quarter earnings preview for multiple transportation companies, including Lowell-based J.B. Hunt Transport Services Inc. and Tontitown-based P.A.M. Transportation Services Inc.

“After a prolonged freight recession created apathy, bordering on disdain, for much of our coverage in 2024, we see a more supportive backdrop developing into 2025,” analysts said. “The surface transportation market remains broadly oversupplied, but capacity is exiting despite a return to headline rate/mile increases. A relatively normal truckload peak brings us into 2025 bid season with more rate momentum, and we expect mid-single-digit (truckload) rate increases this year, ramping through 2025.”

After the markets close Thursday (Jan. 16), J.B. Hunt is expected to report earnings of $1.62 per share in the fourth quarter, up from $1.47 per share in the same period in 2023, based on a consensus of 21 analysts. Revenue is expected to fall by 4.66% to $3.15 billion from $3.3 billion.

For 2024, J.B. Hunt is expected to report earnings of $5.65 per share, down from $6.97 per share in 2023, based on a consensus of 23 analysts. Revenue is projected to fall 5.8% to $12.08 billion from $12.83 billion.

Analysts said J.B. Hunt’s intermodal volumes, a focal point for the company, are expected to rise, but the intermodal segment’s expenses increased as the carrier added assets to protect service in the fourth quarter. J.B. Hunt’s intermodal segment comprises about half the company’s income and revenue.

P.A.M. doesn’t announce when it reports financials, but Stephens analysts expect the company to post earnings of 7 cents per share in the fourth quarter from a loss of 10 cents per share in the same period in 2023. Revenue is projected to rise 0.3% to $180.7 million from $180.17 million.

For 2024, P.A.M. is expected to report earnings of 6 cents per share, down from $1.16 per share in 2023, according to Stephens analysts. Revenue is projected to fall 10.1% to $728.8 million from $810.8 million.

Analysts said P.A.M.’s automotive exposure is expected to continue dampening earnings. However, this could begin to improve in the second half of 2025 as the auto industry becomes more normal. The company is also expected to continue improving fleet age to lower repair costs and downtime.

Stephens analysts maintained share ratings of overweight or buy for J.B.  Hunt and a 12-month target price of $205 and equal weight or hold for P.A.M. and a 12-month target price of $19.

Shares of J.B. Hunt (NASDAQ: JBHT) were trading at $177.61, up $3.32 or 1.9%, mid-morning Monday. In the past 52 weeks the stock has ranged between $153.12 and $219.51. Shares of P.A.M. (NASDAQ: PAMT) were trading at $15.82, down 9 cents or 0.53%, mid-morning Monday. In the past 52 weeks the stock has ranged between $13.51 and $23.70.