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.