Shares of Hub Group (HUBG) plummeted over 11% in pre-market trading on Friday following the company's underwhelming fourth quarter results and 2025 earnings outlook that fell short of expectations.

The transportation management company reported Q4 adjusted earnings of $0.48 per share, in line with analyst estimates. However, revenue for the quarter declined 1.2% year-over-year to $973.5 million, missing Wall Street's expectations of $1 billion.

For fiscal 2025, Hub Group provided disappointing earnings guidance in the range of $1.90 to $2.40 per share, with the midpoint of $2.15 missing the consensus estimate of $2.30. Revenue is projected to be between $4 billion to $4.3 billion, implying modest growth from 2024.

The company cited several headwinds that weighed on its fourth quarter performance and outlook. Revenue per load declined 9% year-over-year due to unfavorable pricing, mix and fuel impacts. Additionally, revenue from the logistics segment slipped compared to the prior year as the brokerage and managed transportation businesses faced softer demand.

Furthermore, Hub Group's costs remained elevated, with purchase transportation and warehousing expenses remaining high, though decreasing from the previous year. Salaries and benefits also increased by $13 million, partly due to the acquisition of the Final Mile business and the EASO joint venture transaction.