• Revenue: $987 million, a decline of 3.7% compared to last year.

• ITS Revenue: $560 million, down 5.9% from prior year.

• Logistics Revenue: $461 million, comparable to $460 million in the prior year.

• Intermodal Volume Growth: 12% year-over-year increase.

• Adjusted Operating Income Margin: 4.3%, a 10 basis points increase over the prior year.

• ITS Adjusted Operating Margin: 2.7%, a 40 basis points improvement over prior year.

• Logistics Adjusted Operating Margin: 6%, a 40 basis points improvement from Q2.

• Adjusted EPS: $0.52 per diluted share for the third quarter.

• Adjusted Cash EPS: $0.62 in the third quarter.

• Cash on Hand: $186 million at the end of the quarter.

• Free Cash Flow: $31 million in the third quarter.

• Capital Expenditures: $12 million in the third quarter, with year-to-date CapEx at $43.2 million.

• Net Debt: $102 million, with leverage at 0.3 times.

• Full Year Revenue Expectation: Approximately $4 billion.

• Full Year Adjusted EPS Expectation: $1.85 to $1.95 per diluted share.

• Warning! GuruFocus has detected 6 Warning Sign with HUBG.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Hub Group Inc (NASDAQ:HUBG) reported a 12% year-over-year increase in intermodal volumes, indicating strong operational performance.

• The company successfully executed a joint venture with EASO, enhancing its position in the Mexican market and aligning with near-shoring trends.

• Hub Group Inc (NASDAQ:HUBG) returned $91 million to shareholders year-to-date through share repurchases and dividends, demonstrating a commitment to shareholder value.

• The company is undertaking a network alignment initiative expected to improve operating margins in the logistics segment by 100 basis points.

• Hub Group Inc (NASDAQ:HUBG) maintained a strong balance sheet with a net debt of $102 million and a leverage ratio of 0.3 times, indicating financial stability.

Negative Points

• Revenue declined by 3.7% compared to the previous year, reflecting challenges in the current market environment.

• Revenue per load in the intermodal segment decreased by 16% year-over-year, impacted by mixed fuel and pricing pressures.

• The logistics segment faced lower volumes in the final mile business due to a large customer consolidating facilities.

• Brokerage business experienced flat volumes year-over-year and faced headwinds in revenue per load due to a higher mix of LTL and lower spot market activity.

• The company incurred $10.4 million in adjustments related to network alignment and the EASO transaction, impacting financial results.