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Dec 31, 2022
Hub Group Q4 2022 Earnings Report
Hub Group reported fourth quarter results with a 2% increase in revenue and earnings per share of $2.42.
Key Takeaways
Hub Group reported a 2% increase in revenue for the fourth quarter of 2022, reaching $1.3 billion, with net income at $79 million and diluted earnings per share at $2.42. The company's full-year revenue grew by 26% to $5.3 billion, with net income of $357 million and diluted earnings per share of $10.64. Market conditions softened during the quarter, but Hub Group anticipates demand will return by mid-2023.
Fourth quarter revenue increased by 2% to $1.3 billion compared to the previous year.
Net income for the fourth quarter was $79 million, with diluted earnings per share of $2.42.
ITS revenue increased 5% to $802 million.
Logistics revenue increased 9% to $245 million driven by organic growth and the acquisition of TAGG Logistics.
Hub Group
Hub Group
Hub Group Revenue by Segment
Revenue by Segment
Intermodal & Transportation Solutions Revenue
CapyFin.comLogistics Revenue
CapyFin.com Forward Guidance
Hub Group expects 2023 diluted earnings per share to range from $7.00 to $8.00, with revenue between $5.2 to $5.4 billion and gross margin between 14.5% to 15.0%.
Positive Outlook
- Revenue will range from $5.2 to $5.4 billion.
- Gross margin as a percentage of revenue will range from 14.5% to 15.0%.
- Diluted earnings per share will range from $7.00 to $8.00.
Challenges Ahead
- Costs and expenses will range from $420 to $440 million for the year.
- The effective tax rate for the year will be 24-25%.
- Capital expenditures for containers, tractors, warehousing equipment and technology will range from $170 to $190 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income