CFO Warns Q3 Profit Could Drop 5-10% as Trucking Costs Surge
JBHT sits 88% above its 52-week low of $130.12.
Summary
CFO Brad Delco warned at a Morgan Stanley conference that Q3 profit could fall 5-10% sequentially due to higher transportation costs, including diesel and driver rates. The company expects $25M in additional driver-hiring costs and at least $10M in higher fuel costs this quarter. Intermodal, which generates about half of revenue, faces a two-quarter lag in price increases catching up with costs. Shares dropped over 11% premarket, and J.B. Hunt stock plunged as diesel prices are high enough to hit earnings. This follows strong Q2 results with 41% profit growth, making the warning a sharp reversal.
At the time of this announcement, JBHT was trading at $244.41 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $25.6B. The 52-week trading range was $130.12 to $299.76. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.