Hub Group Plunges to New 1-Year Low Following Dismal Earnings Report
November 2, 2023
🌧️Trending News
Shares of Hub Group ($NASDAQ:HUBG), a leading provider of transportation logistics, plunged to a one-year low following the release of its dismal earnings report. The company is based in Chicago, Illinois, and provides services for container, truckload, rail and intermodal shipments. It has become an essential part of the supply chain for many major companies across the United States. The earnings report showed that profits had declined significantly in the most recent quarter, with revenues dropping and operating expenses rising.
The outlook for Hub Group is far from rosy, with analysts expecting further losses in the coming quarters. As a result, investors are increasingly concerned about the company’s future prospects. With competition in the logistics and transportation industry growing, Hub Group will need to find a way to adapt and stay competitive or else risk further losses.
Earnings
HUB GROUP‘s Q2 earning report for FY2023 ending June 30 2021 revealed dismal results for the company, earning 981.32M USD in total revenue and 26.59M USD in net income. This is a stark contrast to their FY2022 Q2 result, with a 30.0% decrease in total revenue and 74.1% decrease in net income compared to the same period last year. Over the last 3 years, HUB GROUP’s total revenue has risen from 981.32M USD to 1040.46M USD, but this growth has not been enough to offset the recent losses. As a result, the company’s stock price has plunged to a new 1-year low following the dismal earnings report.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hub Group. More…
| Total Revenues | Net Income | Net Margin |
| 4.83k | 274.88 | 5.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hub Group. More…
| Operations | Investing | Financing |
| 478.81 | -261.91 | -173.01 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hub Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.8k | 1.19k | 50.37 |
Key Ratios Snapshot
Some of the financial key ratios for Hub Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.1% | 45.2% | 7.6% |
| FCF Margin | ROE | ROA |
| 5.8% | 14.0% | 8.2% |
Market Price
Trading opened at $70.7 and closed at $70.0, down 0.1% from the previous closing price of 70.1. This caused the company’s stock price to drop from its previous closing price of 70.1 to its current level of 70.0. Overall, the dismal earnings report has caused the stock to drop to a new 1-year low and investors are hoping that the company can turn things around in the near future. Live Quote…
Analysis
As GoodWhale’s analysis of HUB GROUP‘s financials, we have classified them as ‘Rhino’ based on our Star Chart. A Rhino is a company that has achieved moderate revenue or earnings growth. These type of companies may be of interest to value investors, who are looking for stocks with reliable financial metrics and a track record of stable growth. The financial health score of HUB GROUP is 10/10, suggesting that the company is well-positioned to pay off debt and fund future operations. Furthermore, their assets are strong, but their growth, profitability and dividend metrics are all moderate. This is likely to appeal to investors who are looking for stocks with reliable fundamentals and steady growth. More…
Peers
The competition in the logistics industry is fierce. Hub Group Inc, Stonepath Group Inc, XPO Logistics Inc, and LHN Logistics Ltd are all fighting for market share. Each company has its own strengths and weaknesses, and they are constantly trying to one-up each other.
– Stonepath Group Inc ($OTCPK:SGRZ)
The company’s market cap is $4.38k and its ROE is -2.67%. The company is engaged in the business of providing logistics and transportation services.
– XPO Logistics Inc ($NYSE:XPO)
XPO Logistics Inc is a transportation and logistics company that operates in 32 countries. It has a market cap of 5.27B and a ROE of 42.78%. The company provides services such as truckload brokerage, intermodal, last mile, less-than-truckload, managed transportation, and warehousing.
Summary
Investors in Hub Group, Inc. (HUBG) were disappointed on Monday as the company reported worse-than-expected earnings for the first quarter of 2021. Management attributed the miss to higher-than-expected expenses related to expanding their network and increased operating costs due to higher freight demand and resulting driver shortages. Despite the weak results, analysts remain hopeful about Hub Group’s future prospects, citing its strong market position and investments in technology as possible drivers of future growth.
Related Posts
Recent Posts
