Hunt flags Q3 cost pressures, shares sink 12%

J.B. Hunt Transport Services’ shares fell about 12% in early Wednesday trading after the company warned investors that third-quarter costs are rising faster than pricing. At an investor conference Tuesday, executives said near-term pressures should drive sequential EPS to decline 5% to 10% for the current period, pointing to midpoint third-quarter EPS of $1.77 versus a $2.10 consensus estimate. Management cited a surge in diesel fuel prices and higher driver-related expenses, including $25 million in incremental driver costs and at least a $10 million fuel headwind. Fuel surcharges lag by one week.