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What's in Store for C.H. Robinson (CHRW) in Q1 Earnings?

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C.H. Robinson Worldwide, Inc. (CHRW - Free Report) is slated to release first-quarter 2021 earnings numbers on Apr 27, after market close.

The Zacks Consensus Estimate for first-quarter earnings remained flat at 97 cents per share in the past 30 days. However, it has an impressive record with respect to earnings per share, having outpaced the Zacks Consensus Estimate in three of the last four quarters (missing the same in one). It has a trailing four-quarter earnings surprise of 23.1%, on average.

With this, let’s take a look at the factors that are expected to have influenced the company’s performance 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

 

Higher pricing in air, increased charter flights and larger shipment sizes are likely to have driven revenues in the Global Forwarding unit. The consensus mark for Global Forwarding net revenues indicates a 23.4% increase from the first-quarter 2020’s reported number.

Gradual recovery in the economy and improving freight-market conditions are likely to have aided C.H. Robinson’s first-quarter top line numbers. Favorable truckload pricing and increase in less than truckload (“LTL”) volumes are expected to have boosted revenues in the North American Surface Transportation (“NAST”) division, the primary revenue generator. The Zacks Consensus Estimate for first-quarter net NAST revenues indicates 9.9% increase from the year-ago quarter’s reported number.

Although C.H. Robinson seems to be recovering from the coronavirus-induced slump, we note that the company’s truckload segment still remains weak. The Zacks Consensus Estimate for adjusted gross profits in the truck segment indicates 3.4% fall from the year-ago quarter’s reported number.

Earnings Whispers

The proven Zacks model does not predict an earnings beat for C.H. Robinson in the first quarter of 2021. 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, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: C.H. Robinson has an Earnings ESP of -0.58% as the Most Accurate Estimate is pegged at 96 cents, less than the Zacks Consensus Estimate of 97 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 Q4 Earnings

C.H. Robinson’s fourth-quarter 2020 earnings of $1.08 per share surpassed the Zacks Consensus Estimate of 94 cents. The bottom line also surged 47.9% year over year. Total revenues of $4,549.5 million not only outperformed the Zacks Consensus Estimate of $4,125.9 million, but also increased 19.9% year over year.

Stocks to Consider

Investors interested in the broader Transportation sector may consider JetBlue Airways Corporation (JBLU - Free Report) , Herc Holdings Inc. (HRI - Free Report) and Landstar System, Inc. (LSTR - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Landstar has an Earnings ESP of +0.79% and is Zacks #2 Ranked, presently. The company will release first-quarter 2021 results on Apr 21.

Herc Holdings has an Earnings ESP of +18.8% and sports a Zacks Rank of 2, at present. The company will release first-quarter 2021 results on Apr 22.

JetBlue Airways has an Earnings ESP of +3.09 and carries a Zacks Rank #3. The company is set to release first-quarter 2021 earnings numbers on Apr 27.

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