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C.H. Robinson Inc. (CHRW - Analyst Report) 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 announcement.

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 customs.

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.

Earnings Whispers

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 Earnings ESPand a Zacks Rank #1, 2 or 3 for this to happen. Unfortunately, this is not the case here as elaborated below.

Zacks Rank: C.H. Robinson carries a Zacks Rank #3 (Hold).

Zacks ESP: 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. (ECHO - Snapshot Report) with earnings ESP of +9.09% and Zacks Rank #3.

FedEx Corp. (FDX - Analyst Report) with earnings ESP of +1.71% and Zacks Rank #3.

Grupo Aeroportuario del Sureste SAB de CV (ASR - Snapshot Report) with earnings ESP of +0.66% and Zacks Rank #3.

Read the Full Research Report on ASR
Read the Full Research Report on CHRW
Read the Full Research Report on FDX
Read the Full Research Report on ECHO


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