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Is a Beat Likely for C.H. Robinson (CHRW) in Q2 Earnings?

C.H. Robinson Worldwide, Inc. CHRW is slated to release second-quarter 2020 earnings numbers on Jul 28, after market close.

Let’s take a look at the factors that are expected to have influenced the company’s second-quarter performance.

Weak freight market conditions, worsened by coronavirus, are likely to have affected volumes in the second quarter. Soft freight demand is expected to have hurt truckload volumes in the soon-to-be-reported quarter. Additionally, coronavirus-related woes might get reflected on the company’s manufacturing, automotive, chemical and energy volumes.

Contraction in volumes at the ocean and air units is anticipated to get reflected in Global Forwarding segment revenues. The Zacks Consensus Estimate for total revenues at the Forwarding segment indicates a 15.4% decline from the second-quarter 2019 reported figure.

However, C.H. Robinson’s North American Surface Transportation ("NAST") division is expected to have benefited from the Prime Distribution Services acquisition completed in March. Additionally, the company’s top line is anticipated to have been positively impacted by last year’s acquisitions of Dema Service and Space Cargo.

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 second 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 +6.02% as the Most Accurate Estimate is pegged at 57 cents, more than the Zacks Consensus Estimate of 54 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 #3.

Highlights of Q1 Earnings

In the last-reported quarter, the company delivered a negative earnings surprise of 19.7%. The bottom line also plunged 50.9% year over year. However, total revenues surpassed the Zacks Consensus Estimate and also increased 1.4% year over year. This upside was led by higher truckload and less than truckload volumes.

Other Stocks to Consider

Investors interested in the broader Transportation sector may also consider Air Lease Corporation AL, Canadian Pacific Railway Limited CP and Expeditors International of Washington, Inc. EXPD as these stocks too possess the right combination of elements to beat on earnings this reporting cycle.

Air Lease has an Earnings ESP of +23.32% and a Zacks Rank of 3. The company will announce second-quarter earnings numbers on Aug 6.

Canadian Pacific has an Earnings ESP of +1.27% and a Zacks Rank #1. The company will release second-quarter results on Jul 22.

Expeditors has an Earnings ESP of +6.87% and a Zacks Rank #3. The company will disclose second-quarter financial numbers on Aug 4.

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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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