Freight management company Hub Group Inc. posted a quarterly profit that beat market estimates, helped by strong growth at its intermodal segment.
Revenue at the intermodal segment, which involves the transportation of freight using multiple modes of transportation, grew 25 percent, while volumes rose 22 percent. It contributes more than 70 percent to revenue.
Third-quarter net income was $12.6 million, or 34 cents a share, compared with $9.8 million, or 26 cents a share, a year ago.
Revenue at the asset-light freight transportation company, which competes with Pacer International and C.H. Robinson Worldwide, rose 23 percent to $478.4 million.
Analysts on average were expecting Hub Group to earn 33 cents a share on revenue of $486.3 million, according to Thomson Reuters I/B/E/S.
Shares of the Downers Grove, Illinois-based company closed at $29.34 on Tuesday on Nasdaq. They have risen 36 percent since touching a year-low in February.
