J.B. Hunt Transport Services (JBHT) expects Q2 to Q3 earnings to decline 5% to 10%, Chief Financial Officer Brad Delco said during a conference call on Tuesday.
Delco said the company faced "one of the most acute changes in the cost of purchased transportation," with intra-quarter spot rates rising 30%. He added the JBT business "lost a little bit of money," while margins at ICS brokerage were squeezed.
Delco expects driver-related costs, including recruiting, advertising, onboarding, training and sign-on bonuses, to be about $25 million higher in Q3 than in Q2.
Citing record-high diesel prices, Delco also expects a $10 million sequential headwind from Q2 to Q3.
Shares of J.B. Hunt were down more than 10% in pre-bell Wednesday.