Business
Hub Group, Inc. Reports Second Quarter 2023 Results
Highlights: Diluted earnings per share (EPS) of $1.44 for the quarterSecond quarter revenue of $1.0 billionQuarterly operating income of $62 million (6.0% of
About this update from Hub Group, Inc.
[{"type":"text","content":"Highlights: Diluted earnings per share (EPS) of $1.44 for the quarterSecond quarter revenue of $1.0 billionQuarterly operating income of $62 million (6.0% of revenue) driven by performance of our Logistics Segment Continued focus on return of capital with $100 million of shares repurchased in the quarter Exceptionally strong balance sheet, ending the quarter with cash and cash equivalents of $342 million OAK BROOK, Ill., July 27, 2023 (GLOBE NEWSWIRE) -- Hub Group, Inc. (NASDAQ:HUBG) announced second quarter 2023 net income of $47 million, and diluted earnings per share of $1.44. Net income for second quarter 2022 was $103 million, or $3.03 per diluted share. “Challenging market conditions have persisted throughout 2023 that have impacted demand for our services. We are seeing the benefits of our strategy to diversify and expand into less cyclical and non-asset-based services, with our Logistics Segment contributing nearly half of our operating income in the quarter, which has helped offset softer profitability at our ITS Segment. We performed well during this year’s intermodal bid season and are providing excellent service which has positioned us to grow as inventory levels normalize and demand increases. We returned $100 million of capital to our shareholders through share repurchases in the second quarter. We remain focused on managing our costs and capital structure and supporting our customers with great service while investing in our core business and technology to drive success in a variety of market conditions,” said Phil Yeager, Hub Group’s President and Chief Executive Officer. Second Quarter 2023 Results Consolidated revenue for the second quarter of 2023 was $1.0 billion as compared to $1.4 billion in second quarter 2022. The decline in revenue was driven by changes in customer rate and volumes in our ITS and Logistics Segments. Purchased transportation and warehousing costs declined as compared to prior year due to lower volumes, reductions in third-party carrier costs and a higher percentage of insourced drayage, partially offset by higher equipment and rail costs. Salaries and benefits costs increased $12 million relative to prior year due to $30 million of incremental expense related to growth of our driver and warehouse employee headcount, partially offset by an $18 million reduction in office employee compensat...