Hub Group Earnings: Intermodal Revenue Still Falling, but Inflection Is Likely in 2024

Hub Group’s fourth-quarter gross revenue fell 23% year over year, similar to its third-quarter decline. Weakness in intermodal container demand and rates, along with falling truck brokerage pricing, was the primary cause, although brokerage volumes were up on new-business wins. Revenue was mostly in line with our forecast. Continued top-line declines were not unexpected given muted retailer restocking and excess capacity in the competing truckload industry. On the positive side, we believe demand across the intermodal landscape has stabilized over the past quarter.