Hub Group Q4 Profit Down 12%, But Results Beat Estimates

(RTTNews) - Hub Group, Inc. (HUBG) on Tuesday reported a 12 percent decline in profit for the fourth quarter from last year, as higher revenues were offset by an impairment charge. However, revenue and adjusted earnings per share for the quarter beat analysts' estimates. Shares of the asset-light freight transportation management company gained almost 7 percent in extended trades.

The Illinois-based company's net income for the fourth quarter was $16.54 million or $0.45 per share, down from $18.84 million or $0.51 per share in the same period last year. The latest quarter's results include a non-cash impairment charge of $2.90 million or $0.05 per share related to changing the trade name of Comtrak Logistics to Hub Group Trucking.

Excluding this item, adjusted earnings for the latest quarter were $0.50 per share, compared to $0.51 per share in the year-ago period. On average, 19 analysts polled by Thomson Reuters expected the company to earn $0.48 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 11 percent to $885.25 million from $801.02 million in the same period last year. Analysts had a consensus revenue estimate for the quarter of $873.60 million.

Hub segment's revenue for the quarter increased 11 percent to $683.61 million, while intermodal revenue rose 3 percent to $466 million on a 4 percent increase in volume. Truck brokerage revenue increased 1 percent to $88 million and Unyson Logistics revenue surged 72 percent to $130 million.

Mode segment's revenue for the quarter increased 8 percent to $214.36 million.

For fiscal 2013, Hub Group's net income was $69.11 million or $1.87 per share, up from $67.95 million or $1.83 per share in the prior year. Adjusted earnings for the year were $1.92 per share, compared to $1.83 per share in the previous year.

Revenue for the year increased 8 percent to $3.37 billion from $3.12 billion last year.

Street expected the company to earn $1.91 per share for the year on revenues of $3.36 billion.

HUBG closed Tuesday's regular trading session at $40.20, down $0.10 or 0.25 percent on a volume of 204,031 shares. However, in after-hours, the stock gained $2.78 or 6.92 percent to $42.98.