Investors in Hub Group, Inc. (NASDAQ:HUBG) had a good week, as its shares rose 3.4% to close at US$36.83 following the release of its third-quarter results. Revenues of US$934m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$0.47, missing estimates by 2.8%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the most recent consensus for Hub Group from 13 analysts is for revenues of US$3.80b in 2026. If met, it would imply a reasonable 2.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 24% to US$2.12. In the lead-up to this report, the analysts had been modelling revenues of US$3.80b and earnings per share (EPS) of US$2.18 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$39.47, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Hub Group, with the most bullish analyst valuing it at US$44.00 and the most bearish at US$36.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Hub Group's growth to accelerate, with the forecast 1.6% annualised growth to the end of 2026 ranking favourably alongside historical growth of 0.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 3.3% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Hub Group is expected to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hub Group. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hub Group's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$39.47, with the latest estimates not enough to have an impact on their price targets.

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. We have estimates - from multiple Hub Group analysts - 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.

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.