JB Hunt (JBHT) reported Q4 numbers and watched their stock sell off on a down market day. Scan the income statement and spend some time trying to understand the fuel surcharge dynamic. On an annual basis they increased the fuel charge 2010 over 2009 by $116 million. The actual coast of fuel and fuel taxes increased by $70 million. Therefore on this line item they have net profits of $116 million. But net earnings are up $32 million.
The fuel charge is hiding a lot of operating cost increases. The shareholder is not participating adequately. Customers and competitors are sure to exploit this vulnerability.
Disclosure: “George Gutowski” writes from a “caveat emptor perspective”. I hold no positions in stocks mentioned in this post. I will not be initiating new positions within the next 72 hours.