A Big Shipper Warns Higher Fuel Prices Will Hurt Profits. Its Stock Is Tumbling

Even with Wednesday’s drop, J.B. Hunt shares have added more than 20% this year. Patrick T. Fallon / AFP via Getty Images Close Key Takeaways Shipping giant J.B. Hunt warned higher driver and fuel-related costs are going to squeeze its profits. The company said it now expects earnings this quarter could drop 5% to 10% sequentially. Oil prices have surged in recent months as the war between the U.S. and Iran drags on, disrupting supplies. Get personalized, AI-powered answers built on 27+ years of trusted expertise. Ask anything to get started... ASK A shipping giant’s stock is tumbling on worries that higher fuel prices are going to hit its bottom line . Shares of J.B. Hunt ( JBHT ) were down nearly 13% in recent trading, leading decliners in the S&P 500 after executives warned higher driver and fuel-related costs are going to squeeze its results this quarter. CFO Brad Delco said at a conference that “in light of these costs that are sort of hitting us, we are expecting our Q2 to Q3 earnings to actually drop 5% to 10%,” according to a transcript provided by AlphaSense. Analysts surveyed by Visible Alpha were expecting third-quarter earnings to grow 9% sequentially. Speaking at the Morgan Stanley Laguna Industrials Conference yesterday, Delco said incremental cost pressures include roughly $25 million in additional driver-related expenses and at least $10 million in fuel headwinds, amid “some of the most radical and abnormal swings in fuel prices that we’ve ever seen.” Oil prices have surged in recent months as the war between the U.S. and Iran drags on, disrupting supplies and putting upward pressure on inflation. Even with Wednesday’s drop, J.B. Hunt shares have added more than 20% this year. Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Get personalized, AI-powered answers built on 27+ years of trusted expertise. ASK Read more News Markets News Stocks & Bond News Partner Links Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.