12:28 PM EDT, 10/16/2024 (MT Newswires) -- J.B. Hunt Transport Services (JBHT) beat Q3 consensus estimates as it delivered a "better-than-expected" growth of 5% in intermodal volume, exceeding the projected decline of 2%, UBS Securities said Wednesday.

"We believe the upside [Q3] intermodal volume performance, discussion of normal seasonality, and recent traction on truck conversions in the East are all signs that supply/demand in truck and intermodal may be improving," UBS analysts said in a note.

The company reported Q3 earnings of $1.49 per diluted share, down from $1.80 last year but above the $1.39 consensus and the UBS estimate of $1.44, and Q3 earnings before interest and taxes that was $7 million above forecast in Integrated Capacity Solutions, or ICS, and $4 million higher in Truckload, while Final Mile was $7 million lower, UBS said.

UBS said it expects flat intermodal volume from Q3 to Q4, with an about 2.5 percentage point decline due to shipper pull-forward activity, while it raised its Q4 intermodal EBIT estimate by 9% and total operating income by 4%. The company's new Q4 EPS estimate is $1.67, up from $1.54, UBS said.

UBS has a buy rating on J.B. Hunt Transport with a price target of $211.

Shares of J.B. Hunt Transport were up 4.1% in recent Wednesday trading.

Price: 181.88, Change: +7.23, Percent Change: +4.14