Hub Group’s Q2 earnings tumble in ‘challenging’ freight economy
Hub Group’s revenue and profits fell in the second quarter compared to last year’s record-breaking results.
The transportation provider reported second-quarter earnings per share (EPS) of $1.44, 3 cents better than the analysts’ estimate of $1.41 but a 52% year-over-year (y/y) decline compared to the same period in 2022.
Revenue for the quarter came in at $1 billion versus the analysts’ estimate of $1.12 billion. Second-quarter revenue declined 29% compared to 2022, when Hub Group reported revenue of $1.4 billion, a quarterly record.
“The freight economy is a challenge this year and that trend continued in the second quarter,” Phil Yeager, Hub Group’s president and CEO, said during the earnings call Thursday. “Import volumes have been lower driven by elevated inventories and the industry has yet to exit surplus capacity. This has in turn driven down rates to our customers and decreased spot market activity, putting pressure on our more transactional services.”
Oak Brook, Illinois-based Hub Group (NASDAQ: HUBG) is a provider of transportation and logistics management solutions.
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