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Hub Group, Inc. (HUBG - Free Report) may have missed its latest quarterly EPS number, but that has not stopped analysts from raising estimates.

This Zacks #1 Rank (Strong Buy) is showing great year-over-year growth and that should continue through organically and through acquisition.

Company Description

Hub Group is a freight transportation management company offering intermodal, truck brokerage and logistic services. The company has over 30 offices throughout North America.

Solid Quarter

While Hub Group did miss by a penny in the latest earnings report on Apr 19, the overall results were solid. Analysts were raising expectations just ahead of the report, so the bar was set fairly high.

The company said that revenue was up 16% last quarter, some of that was due to higher fuel charges and pricing, but mostly due to an increase in volume which rose 13% for the intermodal segment.

Net income came in at $10.5 million, which was up 22% and breaks down to $0.28 per share. That was a penny below expectations, but analysts were still bullish, raising estimates and investors were buying up the stock.

Outlook Improving

Services offered by companies like Hub Group are pinned to the strength of the economy. And right now, people are growing more and more optimistic and more and more goods are being shipped.

Only a handful of analysts have given revised estimates since the earnings release, but all of their forecasts are higher. Currently, the Zacks Consensus Estimate it at $1.60 for this year, a 38% growth rate, and $2.08 next year, a 30% growth rate. Look for both of those levels to keep moving higher as more estimates come in over the next couple of weeks.

New Acquisition

Hub Group has been growing organically, but also just announced a new acquisition on Apr 4. The company bought Exel Transportation for $83 million. Last year Exel posted $717 million in sales.

The Chart

Take a look at just how sharply the earnings projections have been growing year over year for HUBG. Each colored line below represents a full-year's consensus estimate. Additionally, I expect to see that most recent lines continue to increase throughout the year, given the bullish results HUBG has shown thus far.

That is a picture perfect earnings chart for long-term growth.

Hub Group, Inc.   - ticker HUBG>


Bill Wilton is the Aggressive Growth Stock Strategist for He is also the Editor in charge of the Zacks Small Cap Trader service

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