NASDAQ$HUBG

Hub Group Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported record quarterly diluted EPS and revenue growth due to strong freight demand, favorable market conditions, and focus on yield improvement and operating efficiency.

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.

Headline financials

Total Revenue

$1.08B

Previous: $925M+16.3%
EPS (adj)

$1.28

Previous: $0.74+73.0%
Capital Expenditures

-$84.1M

Previous: -$55.4M-51.9%
Free Cash Flow

$94M

Previous: $67.3M+39.6%
Net Income

$43.3M

Previous: $24.8M+74.9%
Operating Income

$59.9M

Previous: $33.9M+76.5%
Gross Profit

$158M

Previous: $108M+45.9%
Cash & Equivalents

$231M

Previous: $185M+24.5%
Total Assets

$2.29B

Previous: $2.06B+11.0%
Stock-Based Comp

$4.8M

Previous: $4.47M+7.5%

Revenue & EPS history

Hub Group · Revenue · Quarterly

$1.08B

Q3 2021+16.3%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

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%.

Tailwinds

  • 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.

Headwinds

  • 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

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 Q3 2021

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro