How Will C.H. Robinson (CHRW) Fare This Earnings Season?

C.H. Robinson Worldwide, Inc. CHRW is slated to release third-quarter 2020 earnings numbers on Oct 27, after market close.

The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised upward by 6.4% in the last 60 days. Let’s take a look at the factors that are expected to have influenced the company’s performance in the quarter.

Weak freight-market conditions amid coronavirus concerns are likely to have affected volumes in the third quarter. Low truckload and less than truckload (“LTL”) volumes are expected to have hurt revenues at the North American Surface Transportation (“NAST”) division, the primary revenue generator. The Zacks Consensus Estimate for third-quarter NAST revenues indicates a 2.2% dip from the year-ago reported number.

However, higher pricing in air, increased charter flights and larger shipment sizes might have driven revenues at the Global Forwarding unit, as was seen in the second quarter. The consensus mark for Global Forwarding revenues hints at a 12.7% increase from the third-quarter 2019’s reported number.

Additionally, cost-reduction initiatives are anticipated to have boosted C.H. Robinson’s bottom line in the third quarter. Moreover, the Prime Distribution Services acquisition, completed in March, and last year’s purchase of Dema Service and Space Cargo, are expected to have contributed to the top line in the to-be-reported quarter.

C.H. Robinson Worldwide, Inc. Price and EPS Surprise

C.H. Robinson Worldwide, Inc. Price and EPS Surprise

C.H. Robinson Worldwide, Inc. price-eps-surprise | C.H. Robinson Worldwide, Inc. Quote

Earnings Whispers

The proven Zacks model predicts an earnings beat for C.H. Robinson in the third quarter of 2020. This is because the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: C.H. Robinson has an Earnings ESP of +1.35% as the Most Accurate Estimate is pegged at $1, more than the Zacks Consensus Estimate of 99 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: C.H. Robinson carries a Zacks Rank #2.

Highlights of Q2 Earnings

In the last-reported quarter, the company delivered an earnings surprise of 96.3%. Total revenues also surpassed the Zacks Consensus Estimate. However, both the top and the bottom lines decreased year over year due to lower pricing in truckload and LTL services.

Other Stocks to Consider

Investors interested in the broader Transportation sector may also consider Knight-Swift Transportation Holdings Inc KNX, Schneider National Inc SNDR and United Parcel Service Inc UPS as these stocks too possess the right combination of elements to beat on earnings this reporting cycle.

Knight-Swift has an Earnings ESP of +3.65% and a Zacks Rank #1. The company is set to release third-quarter financial numbers on Oct 21.

Schneider has an Earnings ESP of +1.82% and a Zacks Rank of 2. The company will release third-quarter earnings on Oct 29.

UPS has an Earnings ESP of +5.40% and a Zacks Rank #2. The company will announce third-quarter results on Oct 28.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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