J.B. Hunt Warns Rising Fuel Costs Will Impact Earnings, Shares Drop Nearly 13%
Shipping company J.B. Hunt (JBHT) warned that rising fuel and driver-related costs are expected to reduce its earnings this quarter by 5% to 10%. The announcement led the stock down nearly 13%, making it one of the worst performers in the S&P 500 on Wednesday. The company cited $25 million in additional driver expenses and at least $10 million from fuel costs, which CFO Brad Delco described as some of the most extreme swings seen. The cost pressures come amid rising oil prices due to ongoing tensions between the U.S. and Iran disrupting supply chains and increasing inflation. Despite Wednesday's drop, J.B. Hunt shares have still gained over 20% this year.
Tickers: $JBHT
Topics: fuel_prices shipping_industry stock_drop