TLDR
- CFO Brad Delco projects Q3 earnings will decline 5% to 10% compared to Q2 results.
- Diesel fuel prices exceeding $6 per gallon will create a $10M sequential cost increase.
- Elevated driver recruitment expenses will contribute an additional $25M headwind in Q3.
- Shares of JBHT plummeted 11% in premarket activity to $243.
- The profit warning triggered declines across trucking stocks including ODFL, KNX, XPO, SNDR, LSTR, and RXO.
Shares of J.B. Hunt Transport Services (JBHT) tumbled 11% during Wednesday’s premarket session, sliding to $243, following CFO Brad Delco’s comments at a Morgan Stanley investor conference that third-quarter profits are expected to decline between 5% and 10% compared to the second quarter.
The sharp selloff marks a painful reversal for shareholders who had enjoyed a 41% gain year-to-date prior to Wednesday’s opening bell.
J.B. Hunt Transport Services, Inc., JBHT
According to Delco, the profit squeeze stems primarily from a timing gap between pricing adjustments and accelerating fuel expenses. Diesel prices have surged past $6 per gallon, representing a dramatic increase from approximately $3.70 during the same period last year.
“There is a little bit of a mismatch, based upon the delay part of pricing, that we see in intermodal relative to the costs we’re feeling now,” Delco said.
While the logistics giant typically avoids issuing specific earnings guidance, Delco characterized the current situation as featuring some of the “most radical and abnormal swings in fuel prices” the company has witnessed in its history.
The fuel price surge alone is projected to impose a $10M sequential cost increase between the second and third quarters.
Compounding the pressure, driver-related expenditures continue escalating. Increased investments in recruitment campaigns, advertising initiatives, onboarding processes, training programs, and sign-on bonuses are expected to add another $25M in expenses during Q3 versus Q2 levels.
Breaking Down the Financial Impact
Analyst consensus estimates had anticipated third-quarter earnings per share of $2.09, representing growth from $1.76 in the prior-year period.
The revised outlook suggests Q3 EPS will land closer to $1.77, essentially flat on a year-over-year basis. This represents a substantial shortfall compared to Wall Street’s expectations.
To put this in perspective, J.B. Hunt generated over $9 per share in earnings during 2022. That figure contracted to approximately $6 in 2025. Current consensus estimates from FactSet point to full-year 2026 earnings around $7.75 per share.
“Gas prices jumped another $0.30 this week,” Delco added at the conference. “We should be concerned about the consumer.”
Broader Transportation Industry Under Pressure
The bearish outlook from J.B. Hunt is reverberating throughout the trucking sector. Competitor stocks including Schneider National (SNDR), Old Dominion Freight Line (ODFL), Knight-Swift Transportation (KNX), RXO (RXO), XPO (XPO), and Landstar System (LSTR) all declined in premarket trading Wednesday.
Despite mounting cost challenges, both Delco and intermodal president Darren Field emphasized that demand for intermodal transportation services remains “very strong,” fueled by persistent truck driver shortages.
Field observed that conventional intermodal lanes are experiencing “the most expensive” rates in company history, while highlighting that the approaching 2027 intermodal bid season represents a “big opportunity” to narrow the spread between operating costs and truckload pricing.
The driver capacity crunch shows no signs of improvement. Delco indicated that fundamental challenges affecting driver availability are “probably getting worse.”
As of Wednesday morning’s premarket session, JBHT stock remained down 11% at $243.
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