UBS on Hub Group (HUBG): Waiting To Find Recipe for Sustainable Robust Earnings Growth

April 20, 2012 1:01 PM EDT
Get Alerts HUBG Hot Sheet
Price: $45.25 --0%

Rating Summary:
    7 Buy, 16 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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UBS maintains a 'Neutral' on Hub Group (NASDAQ: HUBG) price target raised $1 to $39.

Analyst, Elizabeth Mielke, said, "While Hub IM volume and gross revenue growth handily topped our forecasts, Q1 marked yet another quarter of y/y gross margin compression despite continued management assurance it can and will improve. We applaud the strong volume growth but would like to see more of that growth converted into net revenue and EBIT. Since Hub’s annual gross margin peaked at 14% in 2007, IM loads have grown at a CAGR of ~7% while Hub EBIT is flat. In fact, nearly all of the 13% EPS growth from 2007 to 2011 can be attributed to share buybacks and the acquisition of Mode in Q2/11."

For an analyst ratings summary and ratings history on Hub Group click here. For more ratings news on Hub Group click here.

Shares of Hub Group closed at $35.43 yesterday.

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