Higher fuel prices can eventually hurt transportation companies’ earnings, even though these costs are usually passed on to customers.
J.B. Hunt Transport Services’ chief financial officer told investors at a Morgan Stanley conference that third-quarter earnings will be lower than in the second quarter. He said the company cannot adjust intermodal pricing as quickly as fuel costs are rising. Because of this, earnings are expected to fall by about 5% to 10% from the second to the third quarter. He added that the company wanted to be open about these cost pressures.
J.B. Hunt usually does not give specific financial forecasts, but the CFO said the company is now facing some of the biggest and most unusual changes in fuel prices it has ever seen. Diesel prices have risen above $6 per gallon, compared to about $3.70 a year ago. Wall Street had expected third-quarter earnings per share of $2.09, up from $1.76 last year. The company’s new guidance suggests earnings will be closer to $1.77 per share, which is about the same as last year.
The company’s shares dropped sharply in premarket trading and did worse than the overall market.
Before Wednesday, the stock had risen a lot this year because investors were hopeful about better earnings after a tough few years. J.B. Hunt made over $9 per share in 2022, but that dropped to about $6 per share in 2025. Wall Street expected 2026 earnings of about $7.75 per share, according to FactSet. Even if fuel costs go down later, high diesel prices are still a concern for shipping demand in the transportation industry.
