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Hub Group Inc Class A HUBG

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Hub’s Intermodal Container Volume Recovering Nicely; Contract Repricing a Material 2021 Tailwind.

Matthew Young, CFA Equity Analyst

Analyst Note

| Matthew Young, CFA |

Intermodal specialist Hub Group’s fourth-quarter gross revenue increased 6% (in line with our forecast). Growth in the flagship intermodal segment and truck brokerage division accelerated in the quarter as the remarkable bounce in consumer goods spending and related retailer inventory restocking continued to lift freight demand. Also, tight truckload market capacity is starting to boost contract pricing, which will create solid 2021 tailwinds. Revenue in the dedicated-truckload and logistics divisions fell because of shedding unprofitable accounts earlier in 2020.

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Company Profile

Business Description

Hub Group ranks among the largest asset-light providers of rail intermodal service. Following the August 2018 divestiture of logistics provider Mode, which was run separately, its core operating units are intermodal, which uses the Class I rail carriers for the underlying line-haul movement of containers (57% of sales); highway brokerage (15%); Unyson Logistics, which provides outsourced transportation management services (19%); and Hub Dedicated (9%), an asset-based full-truckload carrier.

Contact
2000 Clearwater Drive
Oak Brook, IL, 60523
T +1 630 271-3600
Sector Industrials
Industry Integrated Freight & Logistics
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 5,000

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