Shareholders of Hub Group, Inc. (NASDAQ:HUBG) will be pleased this week, given that the stock price is up 11% to US$35.84 following its latest quarterly results. Hub Group missed revenue estimates by 5.0%, coming in atUS$915m, although statutory earnings per share (EPS) of US$0.44 beat expectations, coming in 3.0% ahead of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.NasdaqGS:HUBG Earnings and Revenue Growth May 13th 2025

Taking into account the latest results, Hub Group's 13 analysts currently expect revenues in 2025 to be US$3.80b, approximately in line with the last 12 months. Statutory earnings per share are predicted to swell 11% to US$1.89. Before this earnings report, the analysts had been forecasting revenues of US$4.02b and earnings per share (EPS) of US$2.11 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

See our latest analysis for Hub Group

The consensus price target fell 9.6% to US$38.28, with the weaker earnings outlook clearly leading valuation estimates. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Hub Group at US$45.00 per share, while the most bearish prices it at US$33.13. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Hub Group shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.0% by the end of 2025. This indicates a significant reduction from annual growth of 3.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.9% annually for the foreseeable future. It's pretty clear that Hub Group's revenues are expected to perform substantially worse than the wider industry.

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The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hub Group's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Hub Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Hub Group going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether Hub Group's debt load is appropriate, using our debt analysis tools  on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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