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Is a Beat in Store for C.H. Robinson (CHRW) in Q3 Earnings?

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C.H. Robinson Worldwide, Inc. (CHRW - Free Report) is slated to release third-quarter 2021 earnings numbers on Oct 26, after market close.

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 ocean services and improved volumes in ocean as well as air services units are likely to have driven revenues in the Global Forwarding unit. The consensus mark for Global Forwarding net revenues indicates a 37.3% increase from third-quarter 2020’s reported number.

Gradual recovery in the economy and improving freight-market conditions are likely to have aided C.H. Robinson’s third-quarter top line. 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 third-quarter 2021 net NAST revenues indicates a 30.4% rise from the year-ago quarter’s reported number.

Meanwhile, rising purchased transportation costs due to persistent tightness in capacity is expected to have hurt the carrier’s bottom line.

Earnings Whispers

Our proven Zacks model predicts an earnings beat for C.H. Robinson in the third 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 exactly 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 +1.06% as the Most Accurate Estimate is pegged at $1.43, while the Zacks Consensus Estimate is at $1.41. 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

C.H. Robinson’s second-quarter 2021 earnings of $1.44 per share surpassed the Zacks Consensus Estimate of $1.31. The bottom line surged 35.8% year over year. Total revenues of $5,532.7 million also outperformed the Zacks Consensus Estimate of $4,937.1 million. The top line soared 52.5% year over year.

Stocks to Consider

Investors interested in the broader Transportation  sector may also consider Copa Holdings, S.A. (CPA - Free Report) , Knight-Swift Transportation Holdings Inc. (KNX - Free Report) and Ryder System, Inc. (R - Free Report) . These stocks possess the right combination of elements to beat on earnings this reporting cycle.

Copa Holdings has an Earnings ESP of +56.90% and is Zacks #2 Ranked, presently. The company will release third-quarter 2021 results on Nov 17.

Knight-Swift has an Earnings ESP of +1.33% and carries a Zacks Rank #2 at present. The company will release third-quarter 2021 results on Oct 20.

Ryder has an Earnings ESP of +4.73% and is currently a #1 Ranked player. The company will release third-quarter 2021 results on Oct 27.

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