Freight management company Hub Group posted a better-than-expected quarterly profit, driven by strong growth at its intermodal segment, and forecast 2011 revenue above market expectations.
Hub Group said 2011 revenue will exceed $2.5 billion helped by its recent acquisition of smaller rival Exel Transportation Services. Analysts were expecting $2.41 billion, according to Thomson Reuters I/B/E/S.
Earlier this month, Hub Group bought Exel Transportation for about $83 million, gaining a bigger share in the fast-growing U.S. intermodal market.
Intermodal involves multiple modes of transportation such as ships, rails and trucks and revenue from that segment rose 17 percent at Hub Group.
Intermodal has been gaining share from truckers in the transportation market because of fuel and cost efficiency.
Hub Group’s first-quarter net income was $10.5 million, or 28 cents a share, compared with $8.7 million, or 23 cents a share, a year ago. Revenue rose 16 percent to $485.4 million.
Excluding charges, its profit of 31 cents a share came above expectations of 29 cents a share.
Shares of the Downers Grove, Illinois-based company closed at $37.53 on Tuesday on Nasdaq.