J.B. Hunt Shares Plunge After Intra-Quarter Profit Warning

J.B. Hunt Transport Services (NASDAQ:JBHT) shares plunged more than 12% in morning trading after the company issued a rare intra-quarter earnings warning, providing a third-quarter profit forecast that fell significantly short of analyst expectations.

Guidance Rattles Investors

Speaking at the Morgan Stanley Laguna Conference, management disclosed that it expects third-quarter earnings per share (EPS) to fall 5% to 10% sequentially from the second quarter. This guidance places expected EPS in a range of $1.72 to $1.81, a figure roughly 19% below prior estimates from BofA Securities.

The forecast represents a stark reversal from the market consensus, which had been modeling a 12% sequential gain in EPS. J.B. Hunt attributed the expected shortfall to rising drayage costs and delays in collecting fuel surcharges. Following the announcement, the stock was trading down 12.7% at $238.28.

Options Market Signals Bearish Conviction

Activity in the options market pointed to heightened bearish sentiment and expectations of further near-term weakness. The put/call ratio rose to 1.53, indicating that trading volume in bearish put options was substantially higher than in bullish call options.

Traders appeared to be making directional bets on continued downside, focusing on short-dated contracts. The most active option was the September 18, 2026, $240 put, with 510 new contracts opened. As the stock fell below $240, these in-the-money puts suggested a belief that the stock would remain under pressure through the contract's expiration in two days.

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Analysts See Long-Term Value

Despite the sharp sell-off and the credibility-damaging nature of an intra-quarter warning, some Wall Street analysts advised clients to look past the immediate headwinds.

Key analyst reactions included:

• BMO Capital reiterated its "Outperform" rating and $320 price target, framing the pullback as a buying opportunity.
• BofA Securities maintained its "Buy" rating but lowered its price target to $302 from a previous $340.

The broader bull case rests on the view that the current cost pressures are transitory and that J.B. Hunt remains one of the companies best-positioned to benefit from an eventual recovery in the freight cycle.