NASDAQ$HUBG

Hub Group Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Hub Group reported strong second-quarter results driven by unprecedented freight market conditions and a focus on customer experience, resulting in significant revenue growth and improved earnings per share.

Hub Group's second-quarter 2021 results showed significant growth, with a 26% increase in revenue to $981 million and net income doubling to $26.6 million, or $0.78 per diluted share, compared to the previous year. This performance was driven by favorable market conditions, a focus on yield improvement and operating efficiency.

  • Revenue increased by 26% to $981 million compared to the second quarter of 2020.
  • Net income doubled to $26.6 million, with diluted earnings per share of $0.78.
  • Intermodal revenue increased by 23% to $550 million due to volume and revenue per load growth.
  • Truck brokerage revenue grew by 62% to $140 million, driven by higher revenue per load and volume growth.

Headline financials

Total Revenue

$981M

Previous: $779M+25.9%
EPS (adj)

$0.78

Previous: $0.60+30.0%
Capital Expenditures

-$26.3M

Previous: -$49.3M+46.5%
Free Cash Flow

$148M

Previous: $62.2M+137.1%
Net Income

$26.6M

Previous: $13.2M+102.2%
Operating Income

$36.9M

Previous: $21M+76.1%
Gross Profit

$121M

Previous: $107M+12.4%
Cash & Equivalents

$246M

Previous: $203M+21.1%
Total Assets

$2.19B

Previous: $2B+9.4%
Stock-Based Comp

$4.17M

Previous: $4.11M+1.5%

Revenue & EPS history

Hub Group · Revenue · Quarterly

$981M

Q2 2021+25.9%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Hub Group anticipates continued growth in 2021, projecting diluted earnings per share to range from $3.50 to $3.70 and revenue to grow in the high-teens percentage range. The company also announced a revenue target of $5.5 to $6.5 billion in 2025.

Tailwinds

  • Diluted earnings per share are expected to range from $3.50 to $3.70 for 2021.
  • Revenue is estimated to grow in the high-teens percentage range for 2021.
  • Gross margin as a percentage of revenue is projected to range from 12.5% to 13.0%.
  • The company plans to add approximately 3,000 containers, resulting in net growth of approximately 2,750 after retirements.
  • Approximately 700 tractors will be added to replace older units and support growth in drayage and dedicated fleets.

Headwinds

  • Costs and expenses are estimated to range from $355 to $365 million for the year.
  • The effective tax rate for the second half of 2021 is projected to range from 24% to 25%.
  • Capital expenditures for fiscal year 2021 are expected to range from $165 to $175 million.
  • Dedicated gross margin decreased primarily due to higher maintenance, repair and purchased transportation expenses.
  • Contractual freight represented 51% of total brokerage volume in the second quarter of 2021 as compared to 64% in 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.3%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+4.2%

Avg return

30 days after

61%

42 / 69 earnings

Positive

+14.0%

Q3 2017

Best reaction

-16.0%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+2.1%+3.4%+24.2%
Q4 2025+1.5%+3.7%+24.8%
Q3 2025-0.6%-0.7%+8.0%
Q2 2025-4.3%+0.9%+6.9%
Q1 2025+0.4%+7.1%+1.7%
Q4 2024-4.2%-2.7%-9.1%
Q3 2024-0.2%+1.3%+18.7%
Q2 2024-9.1%-8.3%+0.8%
Q1 2024-0.2%+0.6%+8.1%
Q4 2023-2.1%-1.9%-6.8%
Q3 2023-5.1%-6.9%+2.0%
Q2 2023+3.4%+3.3%-7.6%
Q1 2023-2.7%-2.7%-4.0%
Q4 2022+10.4%+12.4%+6.2%
Q3 2022+2.8%+5.8%+9.9%
Q2 2022+5.8%+7.2%+2.5%
Q1 2022+3.8%+14.0%+13.5%
Q4 2021+7.9%+7.0%+10.4%
Q3 2021+1.9%+4.2%+6.0%
Q2 2021+3.7%+4.5%+9.0%
Q1 2021+1.6%+7.0%-2.2%
Q4 2020+4.4%+6.7%+11.1%
Q3 2020+1.3%+3.9%+12.1%
Q2 2020+3.2%+2.9%+6.0%
Q1 2020-15.6%-12.2%-7.1%
Q4 2019+7.8%+0.2%-17.3%
Q3 2019-7.7%-1.6%+2.9%
Q2 2019+11.7%+6.1%+6.3%
Q1 2019+0.5%+11.4%-5.7%
Q4 2018-0.9%-0.4%-7.0%
Q3 2018+11.6%+12.6%+5.5%
Q2 2018+10.0%+15.0%+13.9%
Q1 2018-0.3%+0.8%+15.7%
Q4 2017-5.7%+0.1%-2.8%
Q3 2017+14.0%+10.6%+13.5%
Q2 2017-16.0%-15.5%-6.1%
Q1 2017-0.7%-3.6%-14.2%
Q4 2016+7.9%+6.4%+11.5%
Q3 2016-10.3%-8.5%+9.2%
Q2 2016-0.0%+1.1%-1.1%
Q1 2016+6.3%
Q4 2015+10.2%
Q3 2015+8.7%
Q2 2015+8.4%
Q1 2015+8.1%
Q4 2014+7.1%
Q3 2014+3.0%
Q2 2014-5.1%
Q1 2014+6.0%
Q4 2013+3.2%
Q3 2013+2.8%
Q2 2013+6.5%
Q1 2013-5.6%
Q4 2012-0.5%
Q3 2012+0.1%
Q2 2012+1.0%
Q1 2012+0.3%
Q2 2011-0.7%
Q4 2011-0.7%
Q3 2011-1.1%
Q4 2010-3.9%
Q1 2010-0.4%
Q1 2011-0.4%
Q4 2008+2.1%
Q3 2010+0.4%
Q3 2009+0.4%
Q2 2009+1.0%
Q2 2010+1.0%
Q4 2009+1.0%

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