Company Reports

Hub Group is the second-largest intermodal marketing company, or IMC, and also ranks among the 25 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest domestic container fleet in the industry, with access to more than 40,000 containers. By gross revenue, J.B. Hunt is the largest IMC, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Hub Group’s consolidated top line fell 5% year over year (excluding fuel) and once again missed our expected run rate, as did 2024 revenue guidance. Domestic intermodal load volume and pricing came in weaker than we expected on persistent competition from depressed truckload sector rates (including abundant market capacity). This overshadowed a slight uptick in retailer inventory restocking and solid West Coast import gains. In short, truckload industry pricing has remained depressed for longer than we originally thought.

Hub Group is the second-largest intermodal marketing company, or IMC, and also ranks among the 25 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest domestic container fleet in the industry, with access to more than 40,000 containers. By gross revenue, J.B. Hunt is the largest IMC, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Hub Group's consolidated top line fell 13% year over year (excluding fuel) and missed our expected run rate for the flagship intermodal division. We figured intermodal revenue would decline again this quarter on lingering weakness in freight demand and pricing (including abundant truckload market capacity), but we expected greater signs of improvement in retailer inventory restocking, which would benefit volumes. Logistics-segment revenue was up slightly because of the Forward Air Final Mile tuck-in acquisition, which masked ongoing weakness in truck brokerage pricing conditions.

Hub Group is the second-largest intermodal marketing company, or IMC, and also ranks among the 25 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest fleet in the industry, with access to more than 40,000 containers. By gross revenue, J.B. Hunt is the largest IMC, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Hub Group is the second-largest intermodal marketing company, or IMC, and also ranks among the 25 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest fleet in the industry, with access to more than 40,000 containers. By gross revenue, J.B. Hunt is the largest IMC, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Hub Group’s fourth-quarter gross revenue fell 23% year over year, similar to its third-quarter decline. Weakness in intermodal container demand and rates, along with falling truck brokerage pricing, was the primary cause, although brokerage volumes were up on new-business wins. Revenue was mostly in line with our forecast. Continued top-line declines were not unexpected given muted retailer restocking and excess capacity in the competing truckload industry. On the positive side, we believe demand across the intermodal landscape has stabilized over the past quarter.

Hub Group is the second-largest intermodal marketing company, or IMC, and also ranks among the 25 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest fleet in the industry, with exclusive access to more than 30,000 containers. By gross revenue, J.B. Hunt is the largest IMC, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Hub Group is the second-largest intermodal marketing company, or IMC, and also ranks among the 25 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest fleet in the industry, with exclusive access to more than 30,000 containers. By gross revenue, J.B. Hunt is the largest IMC, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Hub Group is the second-largest intermodal marketing company, or IMC, and also ranks among the 25 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest fleet in the industry, with exclusive access to more than 30,000 containers, and enjoys an approximate 10% market share. By gross revenue, J.B. Hunt is the largest IMC, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Hub Group’s third-quarter top line plummeted 24% year over year—similar to the second-quarter decline, led by persistent weakness in intermodal container demand and rates, along with softer truck brokerage pricing (though brokerage volumes were up on new business wins). Revenue missed our expected run rate on greater-than-expected intermodal volume deterioration. Logistics' performance was mostly in line. Overall, the top-line pullback is not unexpected given muted retail-sector inventory restocking and anemic import activity.

Hub Group is the second-largest intermodal marketing company and also ranks among the 25 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest fleet in the industry, with exclusive access to more than 30,000 containers, and enjoys an approximate 10% market share. By gross revenue, J.B. Hunt is the largest intermodal marketing company, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Hub Group’s gross revenue fell to a 26% year-over-year decline, led by significant weakness in intermodal container demand, along with softer truck brokerage pricing. Revenue fell short of our expected run rate on greater-than-expected intermodal volume deterioration. Overall, however, the top-line pullback is not unexpected given retail sector inventory destocking and anemic import activity.

Hub Group is the second-largest intermodal marketing company and also ranks among the 25 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest fleet in the industry, with exclusive access to more than 30,000 containers, and enjoys an approximate 10% market share. By gross revenue, J.B. Hunt is the largest intermodal marketing company, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Narrow-moat Hub Group's top line fell 11% year over year, led by a significant softening in intermodal volume. We've been expecting revenue to contract this quarter as retail-sector inventory destocking and anemic import activity weigh on container demand. This dynamic was only partially offset by resilient demand in the dedicated trucking business.

Hub Group is the second-largest intermodal marketing company and also ranks among the 20 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest fleet in the industry, with exclusive access to more than 30,000 containers, and enjoys an approximate 10% market share. By gross revenue, J.B. Hunt is the largest intermodal marketing company, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Hub Group is the second-largest intermodal marketing company and also ranks among the 20 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest fleet in the industry, with exclusive access to more than 30,000 containers, and enjoys an approximate 10% market share. By gross revenue, J.B. Hunt is the largest intermodal marketing company, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Narrow-moat-rated Hub Group delivered year-over-year top-line growth of 2% in the fourth quarter. We’ve been expecting a continued deceleration in Hub’s top line, though sales came in modestly below our forecast due to a greater-than-expected falloff in truck brokerage segment sell-rates. Hub’s fourth-quarter results and outlook were consistent with the broader theme that retail sector inventory restocking has retrenched, pressuring freight volumes across the trucking and logistics sectors. This was partly offset by lingering intermodal contract pricing tailwinds.

Hub Group is the second-largest intermodal marketing company and also ranks among the 20 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest fleet in the industry, with exclusive access to more than 30,000 containers, and enjoys an approximate 10% market share. By gross revenue, J.B. Hunt is the largest intermodal marketing company, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Narrow-moat Hub Group’s top line grew 26% year over year, driven by strong contract pricing tailwinds, higher fuel surcharges, and tuck-in acquisitions. However, sales came in modestly below our forecast on lower-than-expected intermodal container volumes. We don’t expect to materially alter our fair value estimate of $75 per share. Shares have dipped this year amid potential economic headwinds and in our view are trading in fairly valued territory.