Tutor Perini Corporation (NYSE:TPC) Q4 2018 Earnings Conference Call - Final Transcript
Feb 27, 2019 • 05:00 pm ET
Gary G. Smalley
end of 2017.
Now let me review our assumptions related to the 2019 guidance. While we do not provide specific revenue guidance, as Ron mentioned, we are expecting strong double-digit revenue growth in 2019. Also, as I noted earlier, we anticipate that the Civil segment's operating margin for 2019 will be at the upper end of our historical range of 10% to 12%. The Building segment's operating margin for 2019 should exceed 2%, which has been our normal benchmark. For the Specialty Contractors segment we believe that the operating margin should be in the 5% to 7% range in 2019.
We anticipate an effective tax rate for 2019 of approximately 27% to 28%. We also expect that there will be approximately 51 million diluted shares outstanding for the year. Interest expense for 2019 is estimated to be around $63 million, and of this amount $30 million will be non-cash. We anticipate approximately $20 million of general and maintenance capital expenditures for 2019. In addition, keep in mind that for certain of our large Civil projects we purchase equipment that is entirely owner funded. 2019 we estimate that this amount will be approximately $70 million.
Depreciation and amortization expense for 2018 is estimated at $62 million. We expect that our G&A dollars will be modestly higher in 2019 compared to last year. But given our strong anticipated revenue growth, our G&A margin for 2019 should be quite a bit lower than in 2018. We also anticipate that non-controlling interest in 2019 will be approximately $30 million to $35 million.
Lastly, I'd like to comment as to the expected pace of earnings generation in 2019. We expect that our first quarter EPS will be rather light and far lower than the other quarters in 2019 due to the significantly worse weather, more rain and snow than usual to date in California, British Columbia, and the Midwest and New York, and also due to the timing of when new projects will begin to burn revenue of any significance. More specifically, our forecast calls for first quarter EPS to be only slightly better than last year's first quarter EPS after adjusting for the $0.25 charge we took last year. Earnings momentum in 2018 -- earnings momentum in 2019, however, is expected to increase substantially each quarter as the year progresses.
With that, Ron, I'll turn the call back over to you.
Ronald N. Tutor
Thanks, Gary. Obviously I'm very pleased with our strong fourth quarter performance, particularly with respect to the record backlog that continued through the first quarter of 2019 with the additional award. In addition, the continuing pipeline of major work I discussed previously continues to grow with owners and locations where we have great strength with very little competition to put it bluntly.
There is no reason our backlog should not continue to grow in 2019, and the only thing that stops the momentum will be our own analysis of our intellectual and physical capacity. As I've said before, evidenced everyday by the minimum