Hub (US:HUBG) Newsfilter·2024-08-01 20:03Core Insights - Hub Group, Inc. reported diluted earnings per share (EPS) of $0.47 for Q2 2024, a decrease from $0.72 in Q2 2023, with net income of $29 million compared to $47 million in the prior year [1][3][5] - The company achieved second quarter revenue of $1.0 billion, down 5.2% from $1.04 billion in Q2 2023, primarily due to challenging freight market conditions [2][3] - Operating income for the quarter was $40 million, representing 4.0% of revenue, a decline from $62 million or 6.0% of revenue in the previous year [5][6] Financial Performance - Consolidated revenue for Q2 2024 was $986 million, impacted by lower revenue per load in Intermodal and Brokerage, despite higher volumes in Intermodal and contributions from the Final Mile acquisition [3][4] - Purchased transportation and warehousing costs were $727 million, down $36 million from the prior year, while salaries and benefits remained stable at $142 million [4] - Operating income decreased to $40 million from $62 million year-over-year, with EBITDA (non-GAAP) reported at $89 million [5][6] Capital Allocation and Shareholder Returns - The company executed its capital allocation plan by returning $48 million to shareholders year-to-date, including $15 million in dividends and $33 million in stock repurchases [1][8] - As of June 30, 2024, Hub Group had cash and cash equivalents of $220 million and a net debt/EBITDA ratio of 0.3x [1][8] Segment Performance - The Intermodal and Transportation Solutions segment generated revenue of $561 million, down from $615 million in the prior year, with operating income of $14 million [6][24] - The Logistics segment revenue increased to $459 million, up $6 million from the previous year, with operating income of $26 million [7][24] Outlook - For the full year 2024, the company expects diluted EPS to range from $1.75 to $2.05 and revenue to be approximately $4.0 to $4.3 billion [9]