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.
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.
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.
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.
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.
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.
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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.