Hub Group Reports Higher Revenue, Profits in 1Q
Hub Group reported higher revenue and profits in the first quarter of 2018 with growth coming from intermodal, logistics and dedicated contract carriage operations.
The Oak Brook, Ill.-based company earned $16.2 million, or 48 cents a share, in the three months ended March 31, compared with $10.3 million, or 31 cents a share, in the same period a year ago. Total revenue grew 23% to $1.1 billion in 2018 from $892.8 million in 2017.
Hub Group’s intermodal business increased 14% to $482.5 million, reflecting a 6% increase in loads, higher prices and fuel surcharge revenue. Hub’s truck brokerage revenue increased 13% to $120 million, although the business handled 1% fewer loads in the first quarter of 2018 compared with a year ago.
Revenue for Unyson Logistics, which provides transportation management and supply chain consulting services, climbed 16% to $168.7 million with growth coming from new and existing customers, the company reported.
Hub Group Dedicated, a business formed after the acquisition of Estenson Logistics in 2017, generated revenue of $60 million in the first quarter. That was better than revenue of $57.1 million in the fourth quarter and a sign of things to come as company officials said the unit has won more than $70 million in new business this year.
Mode Transportation, a Hub Group subsidiary that provides truck brokerage and intermodal services, generated revenue of $287.9 million in the first quarter, up 19% from $241.8 million a year ago.
Looking ahead, Hub Group CEO Dave Yeager said earnings for the year are expected to be in the range of $2.34 to $2.44 a share.
“Strong revenue and margin growth in the first quarter, driven by a healthy intermodal pricing environment, spot opportunities and new dedicated business, position us well for a successful year,” Yeager commented in a statement April 26.
Hub Group ranks No. 8 on the Transport Topics Top 100 list of largest for-hire carriers in North America and No. 33 on the Transport Topics Top 50 logistics companies.
