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Sep 30, 2021
Hub Group Q3 2021 Earnings Report
Reported record quarterly diluted EPS and revenue growth due to strong freight demand, favorable market conditions, and focus on yield improvement and operating efficiency.
Key Takeaways
Hub Group reported a strong third quarter with a 16% increase in revenue and record profitability. The company's diluted EPS grew by 73% compared to the prior year, driven by favorable market conditions and a focus on customer experience.
Revenue increased by 16% to $1.1 billion compared to Q3 2020.
Diluted earnings per share reached a record $1.28, a 73% increase year-over-year.
Operating income was $60 million, representing 5.6% of revenue.
The company acquired Choptank Transport, expanding scale and service offerings.
Hub Group
Hub Group
Hub Group Revenue by Segment
Revenue by Segment
Logistics Revenue
CapyFin.com Forward Guidance
Hub Group expects diluted earnings per share to range from $3.90 to $4.00 for 2021. Revenue is estimated to grow in the high-teens percentage range, and gross margin as a percentage of revenue will range from 13.3% to 13.7%.
Positive Outlook
- Diluted earnings per share will range from $3.90 to $4.00 for 2021.
- Revenue will grow in the high-teens percentage range for 2021.
- Gross margin as a percentage of revenue will range from 13.3% to 13.7%.
- Capital expenditures for fiscal year 2021 to range from $150 to $160 million.
- Expect to add 3,000 containers, which will result in net growth of approximately 2,750 after retirements of containers that have reached end of life.
Challenges Ahead
- Effective tax rate for the fourth quarter will be approximately 24%.
- Cost and expenses will range from $365 to $375 million for the year.
- Ongoing challenges with congestion across the supply chain.
- Decline in volume in intermodal by 8% due to congestion.
- Dedicated revenue decreased 7% compared to the prior year