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Dec 31, 2024
Hub Group Q4 2024 Earnings Report
Hub Group reported a decline in fourth quarter 2024 revenue but saw improvements in GAAP and adjusted operating income margins, alongside strong Intermodal volume growth.
Key Takeaways
Hub Group announced fourth quarter 2024 net income of $24 million and diluted earnings per share of $0.40. The company's revenue for the quarter was $974 million, a 1% decline from the prior year, primarily due to lower fuel, Brokerage, Consolidation and Fulfillment, and Managed Transportation revenue, despite strong Intermodal volume growth. Adjusted EPS for the quarter was $0.48.
Fourth quarter revenue was $1 billion, with full year revenue at $4 billion.
GAAP EPS for the fourth quarter was $0.40, and adjusted EPS was $0.48.
The company returned nearly $100 million to shareholders in 2024 through share repurchases and dividends.
A joint venture with EASO was completed in October, expanding Hub Group's North American intermodal presence.
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 2025 diluted earnings per share to range from $1.90 to $2.40, with estimated revenue between $4.0 billion and $4.3 billion. The projected effective tax rate is approximately 25%, and capital expenditures are expected to be between $50 million and $70 million.
Positive Outlook
- Expected diluted EPS range of $1.90 to $2.40 for 2025.
- Anticipated revenue between $4.0 billion and $4.3 billion for the full year 2025.
- Projected effective tax rate of approximately 25% for 2025.
- Capital expenditures are expected to be managed within a range of $50 million to $70 million.
- Continued focus on strategic priorities for long-term growth.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- The revenue guidance range indicates potential for flat to slight growth compared to 2024.
- The EPS guidance range is broad, indicating potential variability.
- Reliance on market conditions for achieving targets.
- Potential for unforeseen expenses or economic downturns impacting results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income