The 10-second takeaway
For the quarter ended March 31 (Q1), Hub Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share improved significantly.
Margins shrank across the board.
Hub Group notched revenue of $739.9 million. The 12 analysts polled by S&P Capital IQ foresaw revenue of $718.2 million on the same basis. GAAP reported sales were 52% higher than the prior-year quarter's $485.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.37. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.36 per share. GAAP EPS of $0.37 for Q1 were 32% higher than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 11.3%, 50 basis points worse than the prior-year quarter. Operating margin was 3.0%, 80 basis points worse than the prior-year quarter. Net margin was 1.8%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $805.2 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $3.19 billion. The average EPS estimate is $1.99.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 77 members rating the stock outperform and seven members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 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 $41.38.
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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 may not 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.