The chart below shows how HUBG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HUBG sees a -0.77% change in stock price 10 days leading up to the earnings, and a +1.89% change 10 days following the report. On the earnings day itself, the stock moves by +0.55%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Intermodal Volume Surge: Intermodal volumes increased 14% year-over-year in the fourth quarter, demonstrating strong demand and effective service delivery.
Operating Income Margin Improvement: Adjusted operating income margin improved by 40 basis points year-over-year to 3.9% for the fourth quarter, reflecting enhanced operational efficiency.
Shareholder Value Commitment: Hub Group returned nearly $100 million to shareholders through dividends and stock repurchases in 2024, showcasing commitment to shareholder value.
Strong Cash EPS Growth: Adjusted cash EPS for the fourth quarter was $0.59, a significant increase from the previous year, indicating strong cash generation capabilities.
EBITDA Growth Amid Revenue Decline: The company reported a 16% increase in EBITDA less CapEx for the full year, highlighting improved cash resiliency despite lower revenue.
Negative
Revenue Decline Reported: Hub Group reported a 6% decrease in full-year revenue, totaling $4 billion, compared to the prior year.
Revenue Decline Analysis: Fourth quarter revenue declined by 1% year-over-year, amounting to $1 billion, indicating a stagnation in growth.
Intermodal Revenue Decline: Intermodal revenue per load decreased by 9% year-over-year, negatively impacting overall revenue despite a 14% increase in intermodal volumes.
Logistics Revenue Decline: Logistics revenue fell to $429 million in the fourth quarter, down from $438 million in the prior year, primarily due to lower brokerage revenue.
Brokerage Segment Decline: The brokerage segment experienced a 6% decline in load count and a 12% drop in revenue per load, reflecting reduced demand in the spot market.
Hub Group, Inc. (NASDAQ:HUBG) Q4 2024 Earnings Call Transcript
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