J.B. Hunt Warns of Earnings Drop, Stock Falls Over 10%
Shares of J.B. Hunt dropped more than 10% after the company warned that third-quarter earnings will fall by between 5% and 10%. The decline was attributed to rising costs related to hiring, training, advertising, and sign-on bonuses, which are expected to add about $25 million in expenses compared to Q2. Additionally, volatile fuel prices have created a $10 million headwind for the company. CFO Brad Delco emphasized that while these challenges pose short-term pressures, he expects volume improvements to help offset some of the costs over time. He described the situation as more of a timing issue and expressed optimism about having visibility into current expenses. Despite the earnings warning, J.B. Hunt has seen its stock rise nearly 100% in the past year.
Tickers: $JBHT