Hub Group (HUBG, Financial) has reached an agreement to purchase assets from Marten Transport's intermodal division. This deal involves acquiring specific intermodal equipment, including more than 1,200 refrigerated containers, for a total of $51.8 million in cash. The transaction is anticipated to conclude by the end of the third quarter, pending customary closing conditions.
Marten Transport will maintain its comprehensive transport and distribution services, focusing on its core operations such as temperature-sensitive and dry truckload services, dedicated carriage, brokerage, and its MRTN de Mexico platform.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Hub Group Inc (HUBG, Financial) is $39.62 with a high estimate of $46.00 and a low estimate of $35.00. The average target implies an upside of 13.64% from the current price of $34.87. More detailed estimate data can be found on the Hub Group Inc (HUBG) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Hub Group Inc's (HUBG, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Hub Group Inc (HUBG, Financial) in one year is $37.09, suggesting a upside of 6.38% from the current price of $34.865. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Hub Group Inc (HUBG) Summary page.
HUBG Key Business Developments
Release Date: May 08, 2025
- Revenue: $915 million for the first quarter, an 8% decrease compared to last year.
- ITS Revenue: $530 million, down 4% from the prior year.
- Logistics Segment Revenue: $411 million, down from $480 million in the prior year.
- Operating Margin: 4.1% for the quarter, a 40-basis point increase over the prior year.
- ITS Operating Margin: 2.7%, a 30-basis point improvement over the prior year.
- Logistics Operating Margin: 5.7%, a 70-basis point improvement over Q1 2024.
- EBITDA: $85 million in the first quarter.
- EPS: $0.44, in line with Q1 2024.
- Cash Flow from Operations: $70 million for the first three months of 2025.
- Capital Expenditures: $19 million, primarily for tractor replacements and technology.
- Net Debt: $140 million, 0.4 times EBITDA.
- Cash EPS: $0.55.
- Intermodal Volume Growth: 8% year-over-year.
- Free Cash Flow: $51 million in the first quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hub Group Inc (HUBG, Financial) achieved a 40-basis point improvement in operating margins during the quarter.
- Intermodal volumes increased by 8% year-over-year due to bid wins and inventory pull forward.
- The company implemented a $40 million cost reduction program, enhancing operational efficiency.
- Hub Group Inc (HUBG) reported an operating income margin of 4.1% for the quarter, a 40-basis point increase over the prior year.
- The logistics segment saw a 70-basis point improvement in operating margin year-over-year due to improved efficiency and network alignment.
Negative Points
- Revenue decreased by 8% compared to the previous year, impacted by lower intermodal revenue per load and reduced fuel revenue.
- Brokerage volume declined 9% year-over-year, with a 10% decline in revenue per load due to lower fuel prices and mix.
- Dedicated volume faced declines due to lower demand and losses of smaller sites to one-way truckload.
- The logistics segment experienced a larger decline in brokerage revenue due to limited stock market opportunities and rate declines.
- Hub Group Inc (HUBG) anticipates a potential slowdown in import volumes to the West Coast, with uncertain magnitude.
