Bear Stearns Ups J.B. Hunt Estimates

Analyst Edward Wolfe says he's surprised by the magnitude of upside in the truckload business

Bear Stearns raised its estimates on J.B. Hunt Transport (JBHT ).

Analyst Edward Wolfe says he's surprised by the magnitude of upside in the truckload business. He says the 55 cents second-quarter EPS beat his 52 cents estimate and the 45 cents consensus estimate. Wolfe says upside was driven by strength in the truck division as operating ratio improved over 650 basis points. He says management continues to outperform the industry with strong discipline and a solid blend of products.

He raised the $1.88 2004 EPS estimate to $2.05, and upped the $2.15 2005 estimate to $2.37. Despite strength, Wolfe believes future upside is difficult as expectations continue to rise. He reiterates the peer perform rating.