Hub Group ( (HUBG) ) has realeased its Q3 earnings. Here is a breakdown of the information Hub Group presented to its investors.
Hub Group, Inc. is a publicly traded company that provides comprehensive transportation and logistics management solutions, leveraging industry-leading technology to enhance supply chain efficiency across the globe.
In the third quarter of 2024, Hub Group reported revenue of $1.0 billion, reflecting a 3.7% decrease from the previous year. Despite challenging market conditions, the company achieved a GAAP diluted earnings per share (EPS) of $0.39 and a non-GAAP adjusted EPS of $0.52, indicating growth from the previous year’s adjusted EPS.
The company’s operating income for the quarter was $32 million, or 3.3% of revenue, with adjusted operating income reaching $42 million. Hub Group also returned $91 million to shareholders through stock repurchases and dividend payments, demonstrating a commitment to shareholder value. Notably, they expanded their intermodal service offerings in Mexico through a joint venture with EASO.
Hub Group’s balance sheet remains strong with $186 million in cash and a net debt/EBITDA ratio of 0.3x. The Intermodal and Transportation Solutions segment faced a decline in revenue, offset by a 12% growth in intermodal volume. Meanwhile, the Logistics segment maintained stable revenue, benefiting from the Final Mile acquisition.
Looking ahead, Hub Group expects its 2024 adjusted diluted EPS to range between $1.85 and $1.95, with projected revenue of approximately $4.0 billion, as they continue to focus on enhancing earnings stability and customer service through strategic initiatives.
