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Hub Group Inc Class A HUBG

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Unusually Favorable Freight Demand and Pricing Tailwinds Persist in Hub Group’s Second Quarter

Matthew Young, CFA Equity Analyst

Analyst Note

| Matthew Young, CFA |

Intermodal specialist Hub Group’s second-quarter gross revenue increased 26% year over year, above our expectations. All segments are seeing robust freight demand (heavy retailer restocking) and excellent pricing conditions (tight trucking market capacity), and these factors will likely persist into first-half 2022. For the flagship intermodal division, strong demand and rate gains comfortably offset headwinds from cost inflation and rail-network congestion (at Union Pacific) and related equipment imbalances. 

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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 (60% of sales); highway brokerage (12%); Unyson Logistics, which provides outsourced transportation management services (20%); and Hub Dedicated (8%), 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 Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 5,000

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