Overview

* Hub Group ( HUBG ) Q2 revenue of $905.6 mln missed analyst expectations, per LSEG data

* Adjusted EPS for Q2 fell to $0.45, down from $0.47 last year

* Adjusted EBITDA for Q2 beat analyst estimates

Outlook

* Hub Group ( HUBG ) expects 2025 EPS between $1.80 and $2.05

* Company projects 2025 revenue of $3.6 bln to $3.8 bln

* Hub Group ( HUBG ) anticipates 2025 capital expenditures of $40 mln to $50 mln

* Proposed Union Pacific and Norfolk Southern combination a catalyst for growth

Result Drivers

* INTERMODAL VOLUME - Intermodal volume grew by 2%, offsetting lower revenue per unit in intermodal and brokerage, decreased fuel revenue

* COST-SAVING INITIATIVES - Progress in cost-saving initiatives helped improve margins and free cash flow

* SUB-SEASONAL DEMAND - Sub-seasonal demand impacted revenue across segments

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $905.65 $913.60

Revenue mln mln (11

Analysts

)

Q2 EPS $0.42

Q2 Net $25.03

Income mln

Q2 Beat $85 mln $75.70

Adjusted mln (10

EBITDA Analysts

)

Q2 Capex $11 mln

Q2 $34.35

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the ground freight & logistics peer group is "buy"

* Wall Street's median 12-month price target for Hub Group Inc ( HUBG ) is $40.00, about 13% above its July 30 closing price of $34.81

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)