A JB Hunt Transport Services Inc. tractor-trailer parked at a freight yard in Indianapolis, Indiana, U.S., on Saturday, January 15, 2022. Luke Sharrett | Bloomberg | Getty Images Shares of JB Hunt plunged more than 10% on Wednesday after the trucking company said it expects its profits to fall in the third quarter. “We want to be transparent with investors and give an update that in light of these costs that are impacting us, we expect our second and third quarter earnings to actually fall between 5% and 10%,” Chief Financial Officer Brad Delco said at the Morgan Stanley Industrials conference. Delco said between recruiting, advertising, onboarding and training costs. and sign-on bonuses, the company expects to see about $25 million more in the third quarter compared to the second quarter. He said that means JB Hunt is “preparing for growth.” Still, he added that the company has also seen “some of the most radical and abnormal swings” in fuel prices it has ever seen and record diesel prices, which are causing a headwind of at least $10 million. Delco added that it expects volumes to improve sequentially to offset incremental pressures. “It’s really more of a matter of time,” he said. “I think you can look at a glass half empty or a glass half full. I’m really glad we have visibility into these costs right now.” Delco also said JB Hunt is working to repair its margins, although it believes the company still has a long way to go. JB Hunt stock has risen almost 100% over the past year. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
