Hub Group Beats Analyst Estimates on EPS (HUBG)

Hub Group Beats Analyst Estimates on EPS

Hub Group (Nasdaq: HUBG ) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hub Group met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share increased significantly.

Margins contracted across the board.

Revenue details
Hub Group notched revenue of $762.8 million. The 12 analysts polled by S&P Capital IQ expected revenue of $758.5 million. Sales were 59% higher than the prior-year quarter's $479.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.48. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.46 per share on the same basis. GAAP EPS of $0.44 for Q4 were 39% higher than the prior-year quarter's $0.33 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 11.0%, 80 basis points worse than the prior-year quarter. Operating margin was 3.6%, 40 basis points worse than the prior-year quarter. Net margin was 2.2%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $719.6 million.

Next year's average estimate for revenue is $3.19 billion. The average EPS estimate is $1.99.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 78 members out of 85 rating the stock outperform, and seven members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Hub Group a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hub Group is outperform, with an average price target of $41.00.

Over the decades, small-cap stocks, like Hub Group have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

Add Hub Group to My Watchlist.

Best Odds in the Universe!
If you're interested in a 98.79% chance at beating the market... and a 70.84% chance at DOUBLING the market's return – Motley Fool Supernova could be just what you're looking for. And get this: We arrived at these odds from 10,000 random back-tested portfolios composed of Motley Fool Co-founder David Gardner's personal stock picks.

It's why David recently handpicked a small team of world-class portfolio managers. You see, he thinks these odds can get even better! And he'd like to prove it to you...

Simply enter your email address. And the answer to the question everybody is asking will be delivered to your inbox!

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.