Dahlman Rose Comments On J.B. Hunt Transport Services Strong 4Q10

According to Dahlman Rose, J.B. Hunt Transport Services JBHT delivered an all-around strong quarter reporting 4Q10 EPS of $0.40, beating its and consensus estimates of $0.38. Dahlman Rose reported that intermodal revenue growth and margin strength as well as improved truckload profitability contributed to the top and bottom line beats. “Due to the earnings beat, favorable outlook, and the share repurchase plan we are increasing our 2011 and 2012 EPS estimates to $2.05 and $2.45 from our prior estimates of $1.95 and $2.30, respectively. Our price target increases from $47 to $50, which is based on a 20.5x multiple applied to our new 2012 EPS. We maintain our Buy rating on JBHT and note that the secular intermodal growth story remains intact as the railroads pump more money into intermodal investments, shippers fret over truck capacity, and fuel costs increase.” J.B. Hunt Transport Services closed yesterday at $44.60.