Hub Group Earnings: Margins Disappoint on Persistent Intermodal Headwinds

Hub Group’s third-quarter top line plummeted 24% year over year—similar to the second-quarter decline, led by persistent weakness in intermodal container demand and rates, along with softer truck brokerage pricing (though brokerage volumes were up on new business wins). Revenue missed our expected run rate on greater-than-expected intermodal volume deterioration. Logistics' performance was mostly in line. Overall, the top-line pullback is not unexpected given muted retail-sector inventory restocking and anemic import activity.