Hub Group jumps on forecast raise, profit beat
28/10/2022 16:59
** Shares of freight transportation management co Hub Group
Inc HUBG.O gain 1.7% to over one-month high of $76.3 in
morning trading
** Co raises FY22 EPS forecast to between $10.4/shr and
$10.6/shr from $10/shr to 10.5/shr earlier; however, co expects
some level of uncertainty in 2023
** Co reports Q3 adj earnings of $2.61/shr vs Refinitiv IBES
estimates of $2.46/shr, beating EPS estimates for 10 consistent
quarters
** Says volume for quarter was impacted by rail strike
threat in September
** Gross margins increased due to growth with existing
customers, new business onboardings, yield management
initiatives and acquisition of TAGG Logistics - co
** At least three brokerages raise PTs on stock
** "We view 3Q22 results as neutral for the stock relative
to expectations as gain on sales helped drive the operating beat
during a quarter impacted by poor rail service and the
disruption ahead of the rail labor strike threat," J.P. Morgan
says
** Eleven of 17 brokerages rate the stock "buy" or higher
and 6 "hold"; their median PT is $91 - Refinitiv data
** Including session gains, stock has fallen 7.2% YTD
(Reporting by Shristi Achar A in Bengaluru)
((Shristi.AcharA@thomsonreuters.com;))