Hub Group Q3 earnings drop even as revenues rise

The Oak Brook, Ill.-based multi-modal transportation management company saw net income fall 9.6 percent to $17.9 million in the third quarter of 2016 despite a 3.7 percent increase in revenues compared with the same 2015 period.    Hub Group, Inc. saw net income drop 9.6 percent year-over-year to $17.9 million in the third quarter of 2016, according to the company’s most recent financial statements.
   The Oak Brook, Ill.-based transportation management company reported diluted earnings per common share (EPS) of $0.54 for the quarter, compared with $0.55 per share in third quarter 2015, even as revenues rose 3.7 percent to $932.8 million.
   Operating income at the company’s Hub segment tumbled 16.8 percent to $21.8 million for the quarter despite revenues jumping 5.3 percent year-over-year to $717 million. Third quarter intermodal revenues increased 1 percent to $466 million thanks to a 5 percent increase in volumes, while truck brokerage revenues jumped 16 percent to $97 million and Unyson Logistics revenues grew 12 percent to $154 million.
   Hub Group’s Mode segment, on the other hand, reported an operating income of $8 million on $252 million in revenues, increases of 11.9 percent and 5.1 percent, respectively.
   Through the first nine months of 2016, the company has grown earnings 16.4 percent year-over-year to $56.6 million despite revenues slipping 1.6 percent to $2.59 billion compared with the same 2015 period.
   “The challenging intermodal pricing environment contributed to the decline in income this quarter,” Hub Group Chairman and CEO Dave Yeager said of the results. “We remain focused on providing excellent service and realizing the benefits of our cost savings initiatives.”