Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Hub Group
So what: In the second quarter revenue increased less than 4% to $778.3 million, but net income rose 18% to $16.9 million, or $0.46. The results were lower than expected and the company also cut its earnings forecast.
Now what: Management now expects earnings per share to be $1.80-$1.90 for the full-year, about 10% lower than the previous forecast. With that, shares are trading at over 15 times 2012 earnings estimates, a fairly high price for a company that isn't growing much at all. I'll leave the move alone and wait for either better value, or for earnings to pick up, before buying shares.
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