Hub Group has lowered its expectations for the third quarter of 2013 to a range of 48 to 51 cents diluted earnings per share.
The company said its quarterly earnings are being affected by a “challenging” intermodal pricing environment, resulting in price increases that were lower than anticipated; “unfavorable” intermodal traffic mix, including soft demand for freight shipping from the U.S. West Coast; less new business than expected in trucker brokerage because of “intense” competition from asset-based carriers; and “unfavorable” business mix in truck brokerage because of a decline in demand for high value-added services.
Consequently, Hub Group now expects its full-year diluted EPS to be in the range of $1.85 to $1.95. Prior to the company’s announcement, analysts estimated that Hub Group’s diluted EPS in the quarter would range from a low of 52 cents to a high of 57 cents, and would be $2.02 for the full year, according to Stifel Transportation & Logistics Research Group.
Hub Group is not the only U.S. domestic transportation company to reduce its guidance for the quarter. Swift Transportation, No. 6 on JOC’s ranking of the Top 50 Trucking Companies; Werner Enterprises, No. 10 on the same ranking; and Knight Transportation, No. 23 on the list, also have lowered guidance for the third quarter.