JB Hunt Stock Sinks As Rising Driver and Fuel Costs Hit Q3 Outlook

JB Hunt Transport Services Inc. (NASDAQ:JBHT) shares fell over 13% on Wednesday after management warned of a sequential earnings decline amid rising costs, while three analysts lowered their price targets.

The decline comes after JB Hunt’s presentation at Morgan Stanley’s 14th Annual Laguna Conference.

JB Hunt Warns Q3 Earnings Could Fall 5%-10%

Chief Financial Officer Brad Delco said Tuesday that JB Hunt expects third-quarter earnings to decline 5%-10% sequentially, according to Benzinga Pro.

Driver-related costs are expected to rise about $25 million from the second quarter as JB Hunt increases hiring, training, and bonuses ahead of peak season.

The company reported second-quarter earnings of $1.91 per share, beating the $1.71 analyst estimate by 11.7%.

Elevated diesel prices are expected to add at least a $10 million sequential headwind, while higher claims and group medical costs add further pressure.

The outlook comes despite strong demand for JB Hunt’s services. Purchased-transportation spot rates climbed about 30% intra-quarter amid tighter capacity.

Analysts Cut JBHT Price Targets

Three firms lowered their JBHT price targets Wednesday following the company’s conference presentation.

Wells Fargo maintained an Overweight rating but cut its price target to $305 from $335, while Barclays maintained Equal-Weight and lowered its target to $285 from $300. BofA Securities maintained a Buy rating and reduced its target to $302 from $340.

The stock carries a Buy rating with an average analyst price forecast of $298.53.

Pricing Becomes Key Margin Lever

JB Hunt said the spread between truckload and Intermodal pricing has widened sharply. The gap in the East, normally 10%-15%, is now above 30%, while the Transcon spread is also well above its typical 25%-30% range.

Management plans to lean more toward pricing than volume as it seeks to repair margins heading into the 2027 Intermodal bid season.

JBHT Stock Price Activity: JB Hunt Transport Servs shares are trading lower by 13.19% at $237.04 at the time of publication on Wednesday, according to Benzinga Pro data.

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