OAK BROOK, Ill. - Hub Group , Inc. (NASDAQ:HUBG) reported second quarter earnings that met analyst expectations, while revenue fell short of estimates amid challenging market conditions. The company also provided full-year guidance below consensus forecasts.
The transportation management company posted earnings per share of $0.47 for Q2, in line with analyst estimates. Revenue came in at $986 million, down 5.2% YoY and below the $1.09 billion consensus estimate.
"I am pleased with the team's performance in the second quarter with Intermodal volume growth of 8% and the strong contribution from Final Mile, resulting in $1.0 billion of revenue," said Phil Yeager, Hub Group's President, CEO and Vice Chairman. "Although market conditions remain challenging, Hub Group benefitted from our disciplined market approach, recent diversification efforts, and strong balance sheet."
Operating income for Q2 was $40 million, or 4.0% of revenue, compared to $62 million or 6.0% of revenue in the prior year period. The company cited lower revenue per load and accessorial revenue in its Intermodal and Brokerage segments as factors impacting results.
For full-year 2024, Hub Group expects earnings per share between $1.75 and $2.05, below the $1.96 analyst consensus. The company forecasts revenue of $4.0 billion to $4.3 billion, also short of the $4.36 billion consensus estimate.
Hub Group ended the quarter with $220 million in cash and cash equivalents. Year-to-date, the company has returned $48 million to shareholders through $15 million in dividends and $33 million in share repurchases.
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