J.B. Hunt Stock Tumbles on Higher Fuel Prices and Driver Costs

Shipping giant J.B. Hunt warned that higher driver and fuel-related costs will squeeze its profits, sending its stock tumbling by nearly 13% in recent trading.

The company's CFO, Brad Delco, stated at the Morgan Stanley Laguna Industrials Conference that 'in light of these costs that are sort of hitting us, we are expecting our Q2 to Q3 earnings to actually drop 5% to 10%.'

This warning contradicts analysts' expectations of a 9% sequential growth in third-quarter earnings.

The increased fuel prices are largely due to the ongoing war between the U.S. and Iran, which has disrupted oil supplies and put upward pressure on inflation.

J.B. Hunt's shares have still added more than 20% this year despite Wednesday's drop.