J.B. Hunt stock plunges 10% on earnings drop expectation
CNBC • • business
Key Points:
- J.B. Hunt's shares dropped over 10% after the company forecasted a 5% to 10% decline in third-quarter earnings due to increased costs.
- The trucking firm anticipates an additional $25 million in expenses related to recruiting, advertising, onboarding, training, and sign-on bonuses in Q3 compared to Q2, signaling preparation for growth.
- Rising and volatile fuel prices, including record-high diesel costs, are expected to create a $10 million headwind for the company.
- CFO Brad Delco emphasized that the earnings drop is largely a timing issue and expressed optimism about volume improvements and margin repairs in the future.
- Despite the recent setback, J.B. Hunt's stock has nearly doubled in value over the past year.
