- Hub Group (HUBG -17.1%) reports Q1 revenue decline of 10.1% Y/Y to $838.9M.
- Intermodal revenue decreased 8% Y/Y to $495M due primarily to a 7% decline in volume.
- Truck brokerage revenue declined 17% Y/Y to $98M; Contractual truckload volume represented 90% of total truckload volume compared to 85% Y/Y.
- Logistics gross margin expanded by 70 bps despite a 10% decline in revenue to $183M due to continuous improvement initiatives, revenue management, and strong growth at CaseStack.
- Dedicated revenue decreased 18% Y/Y to $62M, due to the impact of business we exited, partially offset by growth with new accounts.
- Gross margin declined 110 bps to 12.5%; Operating margin declined 140 bps to 2.4%.
- Ended the quarter with ~1,200 tractors and 5,400 trailers for Dedicated.
- Capex totalled $25M, primarily for tractors, containers, technology investments and construction of new office building on Oak Brook, IL campus.
- Cash and equivalents of $277M and unused and available borrowings under revolving line of credit of $219M.
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2020 Outlook: Capex $50-80M.
- Previously: Hub Group EPS misses by $0.16, misses on revenue (April 30)