HUBG - Hub Group Inc. (HUBG) Q1 2024 Earnings Call Transcript
2024-04-25 23:37:07 ET
Hub Group, Inc. (HUBG)
Q1 2024 Earnings Conference Call
April 25, 2024, 17:00 ET
Company Participants
Phillip Yeager - President, CEO & Vice Chairman
Brian Alexander - EVP & COO
Kevin Beth - EVP, CFO & Treasurer
Conference Call Participants
Scott Group - Wolfe Research
Jon Chappell - Evercore ISI
Bascome Majors - Susquehanna Financial Group
Brian Ossenbeck - JPMorgan
Justin Long - Stephens Inc.
Thomas Wadewitz - UBS
Bruce Chan - Stifel
Christyne McGarvey - Morgan Stanley
David Zazula - Barclays
Presentation
Operator
Hello, and welcome to the Hub Group First Quarter 2024 Earnings Conference Call. Phil Yeager, Hub's President, Chief Executive Officer and Vice Chairman; Brian Alexander, Chief Operating Officer; and Kevin Beth, Chief Financial Officer, are joining the call. [Operator Instructions].
Any forward-looking statements made during the course of the call or contained in the release represent the company's best good-faith judgment as to what may happen in the future. Statements that are forward looking can be identified by the use of words such as believes, expect, anticipate and project and variations of these words, please review the cautionary statements in the release.
In addition, you should refer to the disclosures in the company's Form 10-K and other SEC filings regarding factors that could cause actual results to differ materially from those projected in these forward-looking statements.
As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to your host, Phil Yeager. You may now begin.
Phillip Yeager
Good afternoon, and thank you for joining Hub Group's first-quarter earnings call. Joining me today are Brian Alexander, our group's Chief Operating Officer; and Kevin Beth, our Chief Financial Officer.
Market conditions have remained soft despite improved demand trends and inventory restocking, largely due to excess truckload capacity that is yet to exit the industry. This trend is counter to many prior cycles, and has led to a prolonged trough in the spot market.
This has in turn, driven a competitive start to bid season, as carriers attempt to deploy latent capacity and spot market pricing is pressuring contract rates. We are seeing some positive signs in the market with capacity exits and many customers orienting their purchasing decisions to value of both service and costs.
However, this capacity attrition is not occurring at a pace that is leading to more stability in the broader truckload environment. Despite these market challenges, we continue to execute well on our strategic priorities.
Consistent with our focus on diversifying our service offerings to expand value to our customers, the integration of our recent Final Mile acquisition is performing ahead of expectations, and our strong balance sheet and robust pipeline of opportunities positions us to drive growth via strategic acquisitions....
Hub Group, Inc. (HUBG) Q1 2024 Earnings Call Transcript