J.B. Hunt Shares Plunge 10% After Warning Q3 Earnings May Fall 5%-10%
Updated
Updated · CNBC · Sep 16
J.B. Hunt Shares Plunge 10% After Warning Q3 Earnings May Fall 5%-10%
3 articles · Updated · CNBC · Sep 16
Summary
More than 10% of J.B. Hunt's market value was wiped out Wednesday after the company told investors third-quarter earnings are expected to drop 5% to 10% from the second quarter.
About $25 million in added recruiting, advertising, onboarding, training and sign-on bonus costs is driving the warning, as the carrier staffs up in what CFO Brad Delco called preparation for growth.
At least a $10 million fuel headwind is adding pressure, with Delco citing record-high diesel prices and unusually sharp fuel-price swings.
Sequential volume improvement could partly offset those costs, Delco said, framing the hit as a timing issue while acknowledging the company still has a long way to go on margin repair.
The selloff came despite J.B. Hunt stock having nearly doubled over the past year, underscoring how quickly cost inflation can upend expectations for trucking profits.