**UNITED      STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,      DC 20549**

**FORM      10-Q**

**HUB      GROUP, INC.**

**(Exact      name of registrant as specified in its charter)**

**Delaware**

**36-4007085**

**3050      Highland Parkway, Suite 100**

**Downers      Grove, Illinois 60515**

**(630)      271-3600**

**HUB      GROUP, INC.**

**INDEX**

**               Page**

**PART      I.  Financial Information:**

**Hub      Group, Inc. - Registrant**

**PART      II.  Other      Information                                                                                                     **

| **HUB                GROUP, INC.**                                                                                                                                                                                                                                                                                         |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **CONDENSED                CONSOLIDATED BALANCE SHEETS**                                                                                                                                                                                                                                                                   |   |
| **(in                thousands, except share amounts)**                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                       |   |   |   |
|                                                                                                                                                                                                                                                                                                                       |   | **September                30,****2007** |   |   | **December                31,****2006** |   |
| ASSETS                                                                                                                                                                                                                                                                                                                     |   | (unaudited) |   |   |   |   |
| CURRENT                ASSETS:                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                                                                                                                   |   | $ | 39,824 |   |   | $ | 43,491 |   |
| Accounts                receivable                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Trade,                net                                                                                                                                                                                                                                                                                                  |   |   | 181,601 |   |   |   | 158,284 |   |
| Other                                                                                                                                                                                                                                                                                                                      |   |   | 11,296 |   |   |   | 8,369 |   |
| Prepaid                taxes                                                                                                                                                                                                                                                                                               |   |   | 86 |   |   |   | 2,119 |   |
| Deferred                taxes                                                                                                                                                                                                                                                                                              |   |   | 4,207 |   |   |   | 3,433 |   |
| Prepaid                expenses and other current assets                                                                                                                                                                                                                                                                   |   |   | 5,244 |   |   |   | 4,450 |   |
| TOTAL                CURRENT ASSETS                                                                                                                                                                                                                                                                                        |   |   | 242,258 |   |   |   | 220,146 |   |
|                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Restricted                investments                                                                                                                                                                                                                                                                                      |   |   | 5,116 |   |   |   | 3,017 |   |
| Property                and equipment, net                                                                                                                                                                                                                                                                                 |   |   | 29,477 |   |   |   | 26,974 |   |
| Other                intangibles, net                                                                                                                                                                                                                                                                                      |   |   | 7,168 |   |   |   | 7,502 |   |
| Goodwill,                net                                                                                                                                                                                                                                                                                               |   |   | 225,448 |   |   |   | 225,448 |   |
| Other                assets                                                                                                                                                                                                                                                                                                |   |   | 1,440 |   |   |   | 1,461 |   |
| TOTAL                ASSETS                                                                                                                                                                                                                                                                                                |   | $ | 510,907 |   |   | $ | 484,548 |   |
| LIABILITIES                AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| CURRENT                LIABILITIES:                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Accounts                payable                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Trade                                                                                                                                                                                                                                                                                                                      |   | $ | 129,986 |   |   | $ | 117,676 |   |
| Other                                                                                                                                                                                                                                                                                                                      |   |   | 6,091 |   |   |   | 6,839 |   |
| Accrued                expenses                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Payroll                                                                                                                                                                                                                                                                                                                    |   |   | 12,484 |   |   |   | 18,294 |   |
| Other                                                                                                                                                                                                                                                                                                                      |   |   | 35,742 |   |   |   | 26,617 |   |
|        Related                party payable                                                                                                                                                                                                                                             |   |   | - |   |   |   | 5,000 |   |
| TOTAL                CURRENT LIABILITIES                                                                                                                                                                                                                                                                                   |   |   | 184,303 |   |   |   | 174,426 |   |
| Non-current                liabilities                                                                                                                                                                                                                                                                                     |   |   | 13,400 |   |   |   | 7,691 |   |
| Deferred                taxes                                                                                                                                                                                                                                                                                              |   |   | 42,248 |   |   |   | 43,587 |   |
| STOCKHOLDERS'                EQUITY:                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Preferred                stock, $.01 par value;  2,000,000 shares                authorized;  no shares issued or outstanding in 2007 and                2006                                                                                                                                          |   |   | - |   |   |   | - |   |
| Common                stock                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Class                A:  $.01 par value;  97,337,700 shares authorized in                2007; 41,224,792 shares issued and 38,217,278 outstanding in 2007;                47,337,700 shares authorized in 2006;  41,224,792 shares issued                and 38,943,122 outstanding in 2006 |   |   | 412 |   |   |   | 412 |   |
| Class                B:  $.01 par value; 662,300 shares authorized; 662,296 shares                issued and outstanding in 2007 and 2006                                                                                                                                                                        |   |   | 7 |   |   |   | 7 |   |
| Additional                paid-in capital                                                                                                                                                                                                                                                                                  |   |   | 176,317 |   |   |   | 179,203 |   |
| Purchase                price in excess of predecessor basis, net of tax benefit of                $10,306                                                                                                                                                                                                                 |   |   | (15,458 | ) |   |   | (15,458 | ) |
| Retained                earnings                                                                                                                                                                                                                                                                                           |   |   | 188,045 |   |   |   | 146,243 |   |
| Treasury                stock; at cost, 3,007,514  shares in 2007 and 2,281,670 shares                in 2006                                                                                                                                                                                                    |   |   | (78,367 | ) |   |   | (51,563 | ) |
| TOTAL                STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                                                                  |   |   | 270,956 |   |   |   | 258,844 |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                                                  |   | $ | 510,907 |   |   | $ | 484,548 |   |
| See                notes to unaudited condensed consolidated financial                statements.                                                                                                                                                                                                                          |   |

| **HUB                GROUP, INC.**                                                                                                                                          |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **UNAUDITED                CONDENSED CONSOLIDATED STATEMENTS OF INCOME**                                                                                                    |   |
| **(in                thousands, except per share amounts)**                                                                                                                 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                                                                                        |   | **Three                Months** |   |   | **Nine                Months** |   |   |
|                                                                                                                                                                        |   | **Ended                September 30,** |   |   | **Ended                September 30,** |   |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                        |   | **2007** |   |   | **2006** |   |   |   | **2007**  |   |   | **2006 ** |   |  |   |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                                                                                                                                     |   | $ | 417,842 |   |   | $ | 432,009 |   |   | $ | 1,212,704 |   |   | $ | 1,184,069 |   |
| Transportation                costs                                                                                                                                         |   |   | 360,332 |   |   |   | 374,673 |   |   |   | 1,040,770 |   |   |   | 1,023,869 |   |
| Gross                margin                                                                                                                                                 |   |   | 57,510 |   |   |   | 57,336 |   |   |   | 171,934 |   |   |   | 160,200 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs                and expenses:                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                and benefits                                                                                                                                        |   |   | 22,100 |   |   |   | 23,965 |   |   |   | 71,887 |   |   |   | 71,271 |   |
| General                and administrative                                                                                                                                   |   |   | 9,596 |   |   |   | 9,890 |   |   |   | 31,415 |   |   |   | 28,585 |   |
| Depreciation                and amortization                                                                                                                                |   |   | 1,080 |   |   |   | 1,642 |   |   |   | 3,455 |   |   |   | 5,029 |   |
| Total                costs and expenses                                                                                                                                     |   |   | 32,776 |   |   |   | 35,497 |   |   |   | 106,757 |   |   |   | 104,885 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income                                                                                                                                             |   |   | 24,734 |   |   |   | 21,839 |   |   |   | 65,177 |   |   |   | 55,315 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                income (expense):                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                                                                                                             |   |   | (33 | ) |   |   | (22 | ) |   |   | (78 | ) |   |   | (65 | ) |
| Interest                income                                                                                                                                              |   |   | 711 |   |   |   | 670 |   |   |   | 1,967 |   |   |   | 1,668 |   |
| Other,                net                                                                                                                                                   |   |   | 24 |   |   |   | 7 |   |   |   | 82 |   |   |   | 63 |   |
| Total                other income                                                                                                                                           |   |   | 702 |   |   |   | 655 |   |   |   | 1,971 |   |   |   | 1,666 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations before provision for income                taxes                                                                           |   |   | 25,436 |   |   |   | 22,494 |   |   |   | 67,148 |   |   |   | 56,981 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                for income taxes                                                                                                                                   |   |   | 8,828 |   |   |   | 9,000 |   |   |   | 25,346 |   |   |   | 22,795 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                                                                            |   |   | 16,608 |   |   |   | 13,494 |   |   |   | 41,802 |   |   |   | 34,186 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued                operations:                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operations of HGDS                                                                                                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,634 |   |
| Provision                for income taxes                                                                                                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 653 |   |
| Income                from discontinued operations                                                                                                                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 981 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                   |   | $ | 16,608 |   |   | $ | 13,494 |   |   | $ | 41,802 |   |   | $ | 35,167 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                earnings per common share                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                                                                            |   | $ | 0.43 |   |   | $ | 0.34 |   |   | $ | 1.07 |   |   | $ | 0.85 |   |
| Income                from discontinued operations                                                                                                                          |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 0.02 |   |
| Net                income                                                                                                                                                   |   | $ | 0.43 |   |   | $ | 0.34 |   |   | $ | 1.07 |   |   | $ | 0.87 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per common share                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                                                                            |   | $ | 0.42 |   |   | $ | 0.33 |   |   | $ | 1.06 |   |   | $ | 0.83 |   |
| Income                from discontinued operations                                                                                                                          |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 0.02 |   |
| Net                income                                                                                                                                                   |   | $ | 0.42 |   |   | $ | 0.33 |   |   | $ | 1.06 |   |   | $ | 0.85 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                weighted average number of shares outstanding                                                                                                          |   |   | 38,777 |   |   |   | 39,773 |   |   |   | 39,026 |   |   |   | 40,246 |   |
| Diluted                weighted average number of shares outstanding                                                                                                        |   |   | 39,230 |   |   |   | 40,572 |   |   |   | 39,511 |   |   |   | 41,161 |   |
|                See                notes to unaudited condensed consolidated financial                statements.          |   |    |

| **HUB                GROUP, INC**                                                                          |   |
|------------------------------------------------------------------------------------------------------------|--------|
| **UNAUDITED                CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’                EQUITY** |   |
| **For                the nine months ended September 30, 2007**                                            |   |
| **(in                thousands, except shares)**                                                           |   |
|                                                                                                       |   |   |   |
|                                                                                                       |   | **September                30,** |   |
|                                                                                                       |   | **2007** |   |
| Class                A & B Common Stock Shares Outstanding                                             |   |   |   |
| Beginning                of year                                                                           |   |   | 39,605,418 |   |
| Purchase                of treasury shares                                                                 |   |   | (1,161,762 | ) |
| Treasury                shares issued for restricted stock and stock options                exercised      |   |   | 435,918 |   |
| Ending                balance                                                                              |   |   | 38,879,574 |   |
|                                                                                                       |   |   |   |   |
| Class                A & B Common Stock Amount                                                         |   |   |   |   |
| Beginning                of year                                                                           |   | $ | 419 |   |
| Ending                balance                                                                              |   |   | 419 |   |
|                                                                                                       |   |   |   |   |
| Additional                Paid-in Capital                                                                  |   |   |   |   |
| Beginning                of year                                                                           |   |   | 179,203 |   |
| Exercise                of non-qualified stock options                                                     |   |   | (5,940 | ) |
| Share-based                compensation expense                                                            |   |   | 2,893 |   |
| Tax                benefit of share-based compensation plans                                               |   |   | 3,856 |   |
| Issuance                of restricted stock awards, net of forfeitures                                     |   |   | (3,695 | ) |
| Ending                balance                                                                              |   |   | 176,317 |   |
|                                                                                                       |   |   |   |   |
| Purchase                Price in Excess of Predecessor Basis, Net of Tax                                   |   |   |   |   |
| Beginning                of year                                                                           |   |   | (15,458 | ) |
| Ending                balance                                                                              |   |   | (15,458 | ) |
|                                                                                                       |   |   |   |   |
| Retained                Earnings                                                                           |   |   |   |   |
| Beginning                of year                                                                           |   |   | 146,243 |   |
| Net                income                                                                                  |   |   | 41,802 |   |
| Ending                balance                                                                              |   |   | 188,045 |   |
|                                                                                                       |   |   |   |   |
| Treasury                Stock                                                                              |   |   |   |   |
| Beginning                of year                                                                           |   |   | (51,563 | ) |
| Purchase                of treasury shares                                                                 |   |   | (37,142 | ) |
| Issuance                of restricted stock and exercise of stock options                                  |   |   | 10,338 |   |
| Ending                balance                                                                              |   |   | (78,367 | ) |
|                                                                                                       |   |   |   |   |
| Total                stockholders’ equity                                                            |   | $ | 270,956 |   |
| See                notes to unaudited condensed consolidated financial                statements.          |   |

| **HUB                GROUP, INC.**                                                                                                           |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **UNAUDITED                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**                                                                 |   |
| **(in                thousands)**                                                                                                            |   |
|                                                                                                                                         |   | **Nine                Months Ended September 30,** |   |
|                                                                                                                                         |   | **2007** |   |   | **2006** |   |
| Cash                flows from operating activities:                                                                                         |   |   |   |   |   |   |
|     Income                from continuing operations                                                                     |   | $ | 41,802 |   |   | $ | 34,186 |   |
|     Adjustments                to reconcile income from continuing operations to net cash                                |   |   |   |   |   |   |   |   |
|      provided                by operating activities:                                                               |   |   |   |   |   |   |   |   |
|        Depreciation                and amortization                                                       |   |   | 5,475 |   |   |   | 6,410 |   |
|        Deferred                taxes                                                                      |   |   | 3,178 |   |   |   | 12 |   |
|        Compensation                expense related to share-based compensation plans                      |   |   | 2,893 |   |   |   | 2,649 |   |
|        Gain                on sale of assets                                                              |   |   | (156 | ) |   |   | (31 | ) |
|     Changes                in operating assets and liabilities excluding effects of purchase                transaction: |   |   |   |   |   |   |   |   |
|        Restricted                investments                                                              |   |   | (2,099 | ) |   |   | (1,163 | ) |
|        Accounts                receivable, net                                                            |   |   | (26,244 | ) |   |   | (6,325 | ) |
|        Prepaid                taxes                                                                       |   |   | 2,033 |   |   |   | 5,295 |   |
|        Prepaid                expenses and other current assets                                           |   |   | (794 | ) |   |   | (1,202 | ) |
|        Other                assets                                                                        |   |   | 21 |   |   |   | 234 |   |
|        Accounts                payable                                                                    |   |   | 11,562 |   |   |   | 13,904 |   |
|        Accrued                expenses                                                                    |   |   | 3,315 |   |   |   | 9,152 |   |
|        Non-current                liabilities                                                             |   |   | 418 |   |   |   | - |   |
|             Net                cash provided by operating activities             |   |   | 41,404 |   |   |   | 63,121 |   |
| Cash                flows from investing activities:                                                                                         |   |   |   |   |   |   |   |   |
|    Proceeds                from sale of equipment                                                                             |   |   | 715 |   |   |   | 228 |   |
|    Purchases                of property and equipment                                                                         |   |   | (8,203 | ) |   |   | (5,247 | ) |
|    Cash                used in acquisition of Comtrak, Inc.                                                                   |   |   | (5,000 | ) |   |   | (39,942 | ) |
|    Proceeds                from the disposal of discontinued operations                                                       |   |   | - |   |   |   | 12,203 |   |
|             Net                cash used in investing activities                 |   |   | (12,488 | ) |   |   | (32,758 | ) |
| Cash                flows from financing activities:                                                                                         |   |   |   |   |   |   |   |   |
|    Proceeds                from stock options exercised                                                                       |   |   | 703 |   |   |   | 1,924 |   |
|    Purchase                of treasury stock                                                                                  |   |   | (37,142 | ) |   |   | (45,191 | ) |
|    Excess                tax benefits from share-based compensation                                                           |   |   | 3,856 |   |   |   | 7,897 |   |
|             Net                cash used in by financing activities              |   |   | (32,583 | ) |   |   | (35,370 | ) |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Cash                flows from operating activities of discontinued operations                                                               |   |   | - |   |   |   | 1,848 |   |
| Cash                flows used in investing activities of discontinued                operations                                             |   |   | - |   |   |   | (38 | ) |
|            Net                cash provided by discontinued operations                |   |   | - |   |   |   | 1,810 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Net                decrease in cash and cash equivalents                                                                                     |   |   | (3,667 | ) |   |   | (3,197 | ) |
| Cash                and cash equivalents beginning of period                                                                                 |   |   | 43,491 |   |   |   | 36,133 |   |
| Cash                and cash equivalents end of period                                                                                       |   | $ | 39,824 |   |   | $ | 32,936 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Supplemental                disclosures of cash paid for:                                                                                    |   |   |   |   |   |   |   |   |
|      Interest                                                                                                       |   | $ | 78 |   |   | $ | 64 |   |
|      Income                taxes                                                                                    |   | $ | 14,518 |   |   | $ | 6,573 |   |
| See                notes to unaudited condensed consolidated financial                statements.                                            |   |

**HUB      GROUP, INC.**

**NOTES      TO UNAUDITED CONDENSED**

**CONSOLIDATED      FINANCIAL STATEMENTS**

**NOTE      1.                      Interim      Financial Statements**

**NOTE      2.                      Earnings      Per Share**

|                                                                                       |   | **Three                Months Ended** |   |   | **Three                Months Ended** |   |
|--------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|
|                                                                                       |   | **September                30, 2007** |   |   | **September                30, 2006** |   |
|                                                                                       |   | Income                                |   |   | Shares                                |   |   | Per                Share Amount |   |   | Income |   |   | Shares |   |   | Per                Share Amount |   |
| **Basic                EPS**                                                               |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Income                from continuing operations             |   | $                                     | 16,608 |   |                                  |   | 38,777 |   |   | $ | 0.43 |   |   | $ | 13,494 |   |   |   | 39,773 |   |   | $ | 0.34 |   |
|      Income                from discontinued operations           |   |                                  | -      |   |                                  |   | 38,777 |   |   |   | - |   |   |   | - |   |   |   | 39,773 |   |   |   | - |   |
|      Net                Income                                    |   | $                                     | 16,608 |   |                                  |   | 38,777 |   |   | $ | 0.43 |   |   | $ | 13,494 |   |   |   | 39,773 |   |   | $ | 0.34 |   |
|                                                                                       |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Effect                of Dilutive Securities**                                           |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Stock                options and restricted  stock |   |                                  |   |   |                                  |   | 453 |   |   |   |   |   |   |   |   |   |   |   | 799 |   |   |   |   |   |
|                                                                                       |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted                EPS**                                                             |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Income                from continuing operations             |   | $                                     | 16,608 |   |                                  |   | 39,230 |   |   | $ | 0.42 |   |   | $ | 13,494 |   |   |   | 40,572 |   |   | $ | 0.33 |   |
|      Income                from discontinued operations           |   |                                  | -      |   |                                  |   | 39,230 |   |   |   | - |   |   |   | - |   |   |   | 40,572 |   |   |   | - |   |
|      Net                Income                                    |   | $                                     | 16,608 |   |                                  |   | 39,230 |   |   | $ | 0.42 |   |   | $ | 13,494 |   |   |   | 40,572 |   |   | $ | 0.33 |   |

|                                                                                       |   | **Nine                Months Ended**  |   |   | **Nine                Months Ended**  |   |
|--------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|
|                                                                                       |   | **September                30, 2007** |   |   | **September                30, 2006** |   |
|                                                                                       |   | Income                                |   |   | Shares                                |   |   | Per                Share Amount |   |   | Income |   |   | Shares |   |   | Per                Share Amount |   |
| **Basic                EPS**                                                               |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Income                from continuing operations             |   | $                                     | 41,802 |   |                                  |   | 39,026 |   |   | $ | 1.07 |   |   | $ | 34,186 |   |   |   | 40,246 |   |   | $ | 0.85 |   |
|      Income                from discontinued operations           |   |                                  | -      |   |                                  |   | 39,026 |   |   |   | - |   |   |   | 981 |   |   |   | 40,246 |   |   |   | 0.02 |   |
|      Net                Income                                    |   | $                                     | 41,802 |   |                                  |   | 39,026 |   |   | $ | 1.07 |   |   | $ | 35,167 |   |   |   | 40,246 |   |   | $ | 0.87 |   |
|                                                                                       |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Effect                of Dilutive Securities**                                           |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Stock                options and restricted  stock |   |                                  |   |   |                                  |   | 485 |   |   |   |   |   |   |   |   |   |   |   | 915 |   |   |   |   |   |
|                                                                                       |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted                EPS**                                                             |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Income                from continuing operations             |   | $                                     | 41,802 |   |                                  |   | 39,511 |   |   | $ | 1.06 |   |   | $ | 34,186 |   |   |   | 41,161 |   |   | $ | 0.83 |   |
|      Income                from discontinued operations           |   |                                  | -      |   |                                  |   | 39,511 |   |   |   | - |   |   |   | 981 |   |   |   | 41,161 |   |   |   | 0.02 |   |
|      Net                Income                                    |   | $                                     | 41,802 |   |                                  |   | 39,511 |   |   | $ | 1.06 |   |   | $ | 35,167 |   |   |   | 41,161 |   |   | $ | 0.85 |   |

**NOTE      3.                      Debt**

**NOTE      4.                      Commitments      and Contingencies**

**NOTE      5.  Income Taxes**

**NOTE        6.  New Pronouncements**

**HUB      GROUP, INC.**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL**

**CONDITION      AND RESULTS OF OPERATIONS**

**OUTLOOK,      RISKS AND UNCERTAINTIES**

| ·   | the                degree and rate of market growth in the domestic intermodal, truck                brokerage and logistics markets we                serve; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | deterioration                in our relationships with existing railroads or adverse changes to                the                railroads’ operating rules; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                in rail service conditions or adverse weather                conditions; |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | further                consolidation of railroads; |
|--------------------|----------------------------------------------------|

| ·   | the                impact of competitive pressures in the marketplace, including entry                of new                competitors, direct marketing efforts by the railroads or marketing                efforts of asset-based carriers; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                in rail, drayage and trucking company                capacity; |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | railroads                moving away from ownership of intermodal                assets; |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | equipment                shortages or equipment surplus; |
|--------------------|----------------------------------------------------------|

| ·   | changes                in the cost of services from rail, drayage, truck or other                vendors; |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | labor                unrest in the rail, drayage or trucking company                communities; |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | general                economic and business conditions; |
|--------------------|----------------------------------------------------------|

| ·   | fuel                shortages or fluctuations in fuel                prices; |
|--------------------|------------------------------------------------------------------------------|

| ·   | increases                in interest rates; |
|--------------------|---------------------------------------------|

| ·   | changes                in homeland security or terrorist                activity; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | difficulties                in maintaining or enhancing our information technology                systems; |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | changes                to or new governmental regulation; |
|--------------------|-----------------------------------------------------------|

| ·   | loss                of several of our largest                customers; |
|--------------------|-------------------------------------------------------------------------|

| ·   | inability                to recruit and retain key                personnel; |
|--------------------|------------------------------------------------------------------------------|

| ·   | inability                to recruit and maintain drivers and owner                operators; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | changes                in insurance costs and claims expense;                and |
|--------------------|----------------------------------------------------------------------------------|

| ·   | inability                to close and successfully integrate any future business                combinations. |
|--------------------|---------------------------------------------------------------------------------------------------------------|

**EXECUTIVE      SUMMARY**

**RESULTS      OF OPERATIONS**

|                                                        |   | **Three                Months Ended** |    |   | **Nine                Months Ended** |   |
|-------------------------------------------------------------|--------|---------------------------------------|---------|--------|--------------------------------------|--------|
|                                                        |   | **September                30,**      |    |   | **September                30,**     |   |
|                                                        |   |                                  |    |   |                                 |   |   | **%** |   |   |   |   |   |   |   |   | **%** |   |
|                                                        |   | **2007**                              |    |   | **2006**                             |   |   | **Change** |   |   | **2007** |   |   | **2006** |   |   | **Change** |   |
|                                                        |   |                                  |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Revenue**                                                 |   |                                  |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intermodal                                                  |   | $                                     | 303,289 |   |                                 | $      | 318,927 |   |   |   | (4.9 | )% |   | $ | 891,999 |   |   | $ | 865,499 |   |   |   | 3.1 | % |
| Truck                brokerage                              |   |                                  | 77,115  |   |                                 |   | 77,129 |   |   |   | 0.0 |   |   |   | 224,933 |   |   |   | 224,805 |   |   |   | 0.1 |   |
| Logistics                                                   |   |                                  | 37,438  |   |                                 |   | 35,953 |   |   |   | 4.1 |   |   |   | 95,772 |   |   |   | 93,765 |   |   |   | 2.1 |   |
| **Total                revenue from continuing operations** |   | $                                     | 417,842 |   |                                 | $      | 432,009 |   |   |   | (3.3 | )% |   | $ | 1,212,704 |   |   | $ | 1,184,069 |   |   |   | 2.4 | % |

|                                                                                              |   | **Three                Months Ended** |   |   | **Nine                Months Ended** |   |
|---------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                                                                              |   | **September                30,**      |   |   | **September                30,**     |   |
|                                                                                              |   | **2007**                              |   |   | **2006**                             |   |   | **2007** |   |   | **2006** |   |
|                                                                                              |   |                                  |   |   |                                 |   |   |   |   |   |   |   |
| Revenue                                                                                           |   |                                  | 100.0  | %      |                                 |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
|                                                                                              |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Transportation                costs                                                               |   |                                  | 86.2   |   |                                 |   | 86.7 |   |   |   | 85.8 |   |   |   | 86.5 |   |
|                                                                                              |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Gross                margin                                                                       |   |                                  | 13.8   |   |                                 |   | 13.3 |   |   |   | 14.2 |   |   |   | 13.5 |   |
|                                                                                              |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Costs                and expenses:                                                                |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|      Salaries                and benefits                                |   |                                  | 5.3    |   |                                 |   | 5.5 |   |   |   | 5.9 |   |   |   | 6.0 |   |
|      General                and administrative                           |   |                                  | 2.3    |   |                                 |   | 2.3 |   |   |   | 2.6 |   |   |   | 2.4 |   |
|      Depreciation                and amortization                        |   |                                  | 0.3    |   |                                 |   | 0.4 |   |   |   | 0.3 |   |   |   | 0.4 |   |
| Total                costs and expenses                                                           |   |                                  | 7.9    |   |                                 |   | 8.2 |   |   |   | 8.8 |   |   |   | 8.8 |   |
|                                                                                              |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income                                                                   |   |                                  | 5.9    |   |                                 |   | 5.1 |   |   |   | 5.4 |   |   |   | 4.7 |   |
|                                                                                              |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Other                income:                                                                      |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|      Interest                income                                      |   |                                  | 0.2    |   |                                 |   | 0.1 |   |   |   | 0.1 |   |   |   | 0.1 |   |
|      Total                other income                                   |   |                                  | 0.2    |   |                                 |   | 0.1 |   |   |   | 0.1 |   |   |   | 0.1 |   |
|                                                                                              |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations before provision for income                taxes |   |                                  | 6.1    |   |                                 |   | 5.2 |   |   |   | 5.5 |   |   |   | 4.8 |   |
|                                                                                              |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Provision                for income taxes                                                         |   |                                  | 2.1    |   |                                 |   | 2.1 |   |   |   | 2.1 |   |   |   | 1.9 |   |
|                                                                                              |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                  |   |                                  | 4.0    | %      |                                 |   | 3.1 | % |   |   | 3.4 | % |   |   | 2.9 | % |

*Three      Months Ended September 30, 2007 Compared to the Three Months Ended September      30,      2006*

**Revenue**

**Gross      Margin**

**alaries      and Benefits**

**General      and Administrative**

**Depreciation      and Amortization**

**Other      Income (Expense)**

**Provision      for Income Taxes**

** Income      from Continuing Operations**

**Earnings      Per Common Share**

*Nine      Months Ended September 30, 2007 Compared to the Nine Months Ended September      30,      2006*

**Revenue**

**Gross      Margin**

**Salaries      and Benefits**

**General      and Administrative**

**Depreciation      and Amortization**

**Other      Income (Expense)**

**Provision        for Income Taxes**

**Income      from Continuing Operations**

**Income      from Discontinued Operations**

**Earnings      Per Common Share**

**CRITICAL      ACCOUNTING POLICIES**

**New      Pronouncements**

**LIQUIDITY      AND CAPITAL RESOURCES**

**Contractual      Obligations**

|                               |   |   |   |
|------------------------------------|--------|--------|--------|
| 2007                               |   | $      | 4,997  |   |
| 2008                               |   |   | 18,324 |   |
| 2009                               |   |   | 15,271 |   |
| 2010                               |   |   | 13,313 |   |
| 2011                               |   |   | 12,516 |   |
| 2012                and thereafter |   |   | 15,924 |   |
|                               |   | $      | 80,345 |   |

**Deferred      Compensation**

| 2007                               |   | $      | -      |   |
|------------------------------------|--------|--------|--------|--------|
| 2008                               |   |   | 1,932  |   |
| 2009                               |   |   | 1,021  |   |
| 2010                               |   |   | 1,610  |   |
| 2011                               |   |   | 639    |   |
| 2012                and thereafter |   |   | 4,987  |   |
|                               |   | $      | 10,189 |   |

**QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**CONTROLS      AND PROCEDURES**

**PART      II.                      Other  Information**

**Item      2.  Unregistered Sales of Equity Securities and Use of      Proceeds**

|                                                                    |   | **Total                Number of Shares Purchased** |      |   | **Average                Price Paid Per Share** |   |   | **Total                Number of Shares Purchased as Part of Publicly Announced                Plan** |   |   | **Maximum                Value of Shares that May Yet Be Purchased Under the Plan (in                000’s)** |   |
|-------------------------------------------------------------------------|--------|-----------------------------------------------------|-----------|--------|-------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------|--------|
| January                1 toJanuary                31                    |   |                                                | --        |   |                                            |   | --     |                                                                                                  |   |   | --                                                                                                                  |   |   | $ | 75,000 |   |
| February                1 toFebruary                28                  |   |                                                | --        |   |                                            |   | --     |                                                                                                  |   |   | --                                                                                                                  |   |   |   | 75,000 |   |
| March                1 toMarch                31                        |   |                                                | 408,205   |   |                                            | $      | 30.62  |                                                                                                  |   |   | 408,205                                                                                                             |   |   |   | 62,500 |   |
| April                1 to April                30                       |   |                                                | --        |   |                                            |   | --     |                                                                                                  |   |   | --                                                                                                                  |   |   |   | 62,500 |   |
| May                1 toMay                31                            |   |                                                | --        |   |                                            |   | --     |                                                                                                  |   |   | --                                                                                                                  |   |   |   | 62,500 |   |
| June                1 toJune                30                          |   |                                                | --        |   |                                            |   | --     |                                                                                                  |   |   | --                                                                                                                  |   |   |   | 62,500 |   |
| July                1 toJuly                31                          |   |                                                | 411,715   |   |                                            | $      | 34.49  |                                                                                                  |   |   | 411,715                                                                                                             |   |   |   | 48,300 |   |
| August                1 toAugust                31                      |   |                                                | 100,000   |   |                                            | $      | 31.73  |                                                                                                  |   |   | 100,000                                                                                                             |   |   |   | 45,126 |   |
| September                1 toSeptember                30                |   |                                                | 228,300   |   |                                            | $      | 29.97  |                                                                                                  |   |   | 228,300                                                                                                             |   |   |   | 38,285 |   |
|            Total |   |                                                | 1,148,220 |   |                                            | $      | 31.98  |                                                                                                  |   |   | 1,148,220                                                                                                           |   |   | $ | 38,285 |   |

**Item      6.  Exhibits**

**EXHIBIT      INDEX**

| 31.1 | Certification                of David P. Yeager, Vice Chairman and Chief Executive Officer, Pursuant                to                Rule 13a-14(a) under the Securities Exchange Act of                1934. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification                of Terri A. Pizzuto, Executive Vice President, Chief Financial Officer                and                Treasurer, Pursuant to Rule 13a-14(a) under the Securities Exchange                Act of                1934. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification                of David P. Yeager and Terri A. Pizzuto, Chief Executive Officer                and Chief                Financial Officer, respectively, Pursuant to 18 U.S.C. Section                1350. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|