J.B. Hunt Stock Falls 13% After Warning Q3 Earnings Will Drop 5% to 10% on Surging Fuel and Driver Costs

J.B. Hunt Transport Services issued a rare mid-quarter earnings update on September 16, warning that third-quarter earnings are expected to fall between 5% and 10% sequentially from the second quarter, well below prior expectations. Shares plunged as much as 13% on the day, making JBHT the worst performer in the S&P 500.

The company identified two primary cost pressures driving the shortfall. Approximately $25 million in higher drayage driver costs, covering hiring, sign-on and retention bonuses, advertising and training, stem from J.B. Hunt ramping capacity ahead of growing Intermodal demand. An additional roughly $10 million fuel headwind compounds the problem, with diesel prices rising approximately 30% since July 1 to $6.27 per gallon.

Management characterized much of the spending as timing-related and strategic, positioning the company ahead of the upcoming Intermodal bid season. Despite that framing, investors sold the stock sharply, with the decline ranking it among the single worst sessions in the S&P 500 on the day.