Hub Group, Inc. (NASDAQ: HUBG) reported Q1 EPS of $0.71, $0.17 better than the analyst estimate of $0.54. Revenue for the quarter came in at $933 million versus the consensus estimate of $947.08 million.

GUIDANCE:

Hub Group, Inc. sees FY2019 EPS of $3.25-$3.40, versus the consensus of $3.21.

• We expect that our 2019 diluted earnings per share will range from $3.25 to $3.40. We estimate our quarterly costs and expenses will range from $96 million to $100 million. We expect annual amortization expense associated with the CaseStack and Hub Group Dedicated acquisitions will be approximately $13.6 million and compensation expense related to restricted stock issued to CaseStack management in connection with the acquisition will be approximately $2.5 million in 2019. We project our effective tax rate for 2019 will range from 25% to 26%.
• As our founder said, “Our greatest asset is our people.” To accommodate the growth in our business, we will be embarking on the expansion of our headquarters campus in Oak Brook, IL, adding a second office building that will bring our total capacity to approximately 1,400 employees on the campus. We purchased the land adjacent to our current headquarters in 2016 and will be breaking ground on the new building in the coming months. The budget for the new building is $55 million, of which approximately $25 million will be spent in 2019. As a result, we are revising our capital expenditure guidance for 2019 to range from $115 million to $125 million.

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