Hub Group (Hub Group) Operating Income : $168 Mil (TTM As of Mar. 2024)

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What is Hub Group Operating Income?

Hub Group's Operating Income for the three months ended in Mar. 2024 was $37 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $168 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hub Group's Operating Income for the three months ended in Mar. 2024 was $37 Mil. Hub Group's Revenue for the three months ended in Mar. 2024 was $999 Mil. Therefore, Hub Group's Operating Margin % for the quarter that ended in Mar. 2024 was 3.67%.

Good Sign:

Hub Group Inc operating margin is expanding. Margin expansion is usually a good sign.

Hub Group's 5-Year average Growth Rate for Operating Margin % was 13.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Hub Group's annualized ROC % for the quarter that ended in Mar. 2024 was 5.16%. Hub Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 13.49%.

Hub Group Operating Income Historical Data

The historical data trend for Hub Group's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hub Group Operating Income Chart

Hub Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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152.42

105.83

219.28

450.55

205.40

Hub Group Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															74.23	61.21	41.79	28.17	36.64

Hub Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $168 Mil.

Hub Group (NAS:HUBG) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Hub Group's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	146.564 * ( 1 - 21.5% )	/	( (2241.944	+	2214.375)	/ 2 )
=	115.05274	/	2228.1595
=	5.16 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2936.047	-	506.833	-	( 187.27	-	max(0, 658.21	-	849.245	+	187.27	))
=	2241.944

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2891.27	-	497.537	-	( 195.362	-	max(0, 648.6	-	827.958	+	195.362	))
=	2214.375

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Hub Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	153.448	/	( ( (1004.956 + max(151.784, 0))	+	(988.532 + max(130.119, 0)) )	/	2 )
=	153.448	/	( ( 1156.74	+	1118.651 )	/	2 )
=	153.448	/	1137.6955
=	13.49 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(600.197	+	0	+	58.42)	-	(506.833	+	0	+	0)
=	151.784

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(588.957	+	0	+	38.699)	-	(497.537	+	0	+	1.1368683772162E-13)
=	130.119

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Hub Group's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	36.641	/	999.493
	=	3.67 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Hub Group Operating Income Related Terms

Thank you for viewing the detailed overview of Hub Group's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Hub Group (Hub Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Hub Group Inc (NAS:HUBG) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

HBG:Germany

Address

2001 Hub Group Way, Oak Brook, IL, USA, 60523

Website

https://www.hubgroup.com

Hub Group ranks among the largest providers of rail intermodal service. Roughly 60% of revenue comes from Hub's intermodal and transportation solutions division. ITS includes its flagship intermodal operations, which use the Class I rail carriers for the underlying line-haul movement of containers, as well as its dedicated truckload shipping unit. Asset light truckload and LTL brokerage makes up around 20%. The remaining 20% reflects Hub's logistics division, which provides outsourced transportation management, warehousing and fulfillment, and heavy-goods final mile delivery. Hub is somewhat acquisitive in that it often makes tuck-in acquisitions which expand its brokerage, logistics, and dedicated truckload offerings.

Executives

Dhruv Bansal	officer: Chief Information Officer	2001 HUB GROUP WAY, OAK BROOK IL 60523
Lisa Dykstra	director	2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Kevin Beth	officer: Chief Accounting Officer	2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Thomas P. Lafrance	officer: General Counsel	C/O TRANSPORTATION SYSTEMS HOLDINGS INC., 901 MAIN AVENUE, NORWALK CT 06851
Michael E Flannery	director
Gary Yablon	director	2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Phillip D Yeager	officer: EVP Acct Mgmt & IML Op	2000 CLEARWATER DRIVE, OAK BROOK IL 60523
David P Yeager	director, officer: Vice Chairman and CEO	3050 HIGHLAND PARKWAY, STE 100, DOWNERS GROVA IL 60515
Vava Dimond	officer: Chief Information Officer	2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Charles R Reaves	director	3050 HIGHLAND PARKWAY, STE 100, DOWNERS GROVA IL 60515
Geoffrey Demartino	officer: Chief Financial Officer	100 THERMON DRIVE, SAN MARCOS TX 78666
Jenell Ross	director	2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Michele Mcdermott	officer: Chief Human Resource Officer	2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Nicholas Hannigan	officer: EVP, Truck Brokerage	2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Mary H Boosalis	director	2000 CLEARWATER DRIVE, OAK BROOK IL 60523