Hub Group gets Nasdaq notice for financial filing delay

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It announced in early February that it planned to restate results for the first three quarters of the year after uncovering a $77 million understatement of purchased transportation expenses.Hub Group (NASDAQ: HUBG) said it has 60 days, or until May 18, to submit a plan to Nasdaq to regain compliance with listing rules. If the plan is approved, it then has 180 days from the due date to file (until Sept. 14).“The Notice has no immediate effect on the listing or trading of the Company’s common stock on Nasdaq,” a news release said.The company said it was also reviewing any potential impact on 2024 and 2023 results.It said in February that full-year 2025 revenue declined 7% year over year to approximately $3.7 billion, and that it did not expect any impact to its cash position or operating cash flows (preliminarily reported at $194 million for 2025) as a result of the accounting error. It also guided 2026 revenue to a range of $3.65 billion to $3.95 billion, which was in line with consensus at the time.Hub Group provided an update for the first quarter on Tuesday.It said intermodal volumes reflect “steady demand amid winter storm disruptions” and that rail service has been excellent. (The February update said intermodal loads were down 4% y/y due to poor weather and a tough prior-year comparison.) Its intermodal pricing outlook “continues to improve as truckload capacity exits the market, which is consistent with bid season awards to date.”Hub Group also touted new business wins in its logistics unit (mostly for managed transportation and final-mile services). Brokerage volumes are down as part of the company’s plan to improve revenue per load and profitability.“We continue to take actions to drive growth, improve profitability and increase operating cash flows, which along with our balance sheet strength and strong service positions Hub Group well for long-term growth,” said President, CEO and Vice Chairman Phil Yeager.Shares of HUBG were off 1.3% in after-hours trading on Tuesday.More FreightWaves articles by Todd Maiden:FedEx Freight’s outlook lowered againJ.B. 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