C.H. Robinson Inc.
) is set to release first-quarter 2014 results on April 29 after
the market closes.
Last quarter, the company's reported earnings were below our
estimate. Let's see how things are shaping up prior to this
Factors to Influence This Quarter
We believe C.H. Robinson's asset light model with diversified
freight forwarding solutions provide earnings flexibility even
during slow economic growth. The company will gain through
investments in complementary businesses like ocean air and
However, factors like a competitive freight market, declining
truckload market share and limited margin expansion opportunities
could restrict near-term growth. Further, the increasing cost of
transportation and volume loss from a large sourcing client could
also weigh on the stock in the coming months.
Our proven model does not conclusively show that C.H. Robinson
is likely to beat the Zacks Consensus Estimate this quarter. This
is because a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. Unfortunately,
this is not the case here as elaborated below.
: C.H. Robinson carries a Zacks Rank #3 (Hold).
: The Most Accurate estimate stands at $0.61 while the Zacks
Consensus Estimate is pegged at $0.62, resulting in an Earnings
ESP of -1.61% for C.H. Robinson. This makes surprise prediction
difficult for us so we caution investors against the stock going
into the earnings announcement.
Other Stocks to Consider
Here are some other companies to consider as our model shows
these have the right combination of elements to post an earnings
beat this quarter:
Echo Global Logistics Inc.
) with earnings ESP of +9.09% and Zacks Rank #3.
) with earnings ESP of +1.71% and Zacks Rank #3.
Grupo Aeroportuario del Sureste SAB de CV
) with earnings ESP of +0.66% and Zacks Rank #3.
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