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

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C.H. Robinson Worldwide (CHRW - Free Report) is scheduled to report second-quarter 2022 results on Jul 27, after market close.

The Zacks Consensus Estimate for CHRW’s second-quarter 2022 earnings has been revised upward by 18.4% in the past 90 days. The company also has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters, the average beat being 17.1%.

Let’s see how things are shaping up for C.H. Robinson this earnings season.

Q2 Expectations

The Zacks Consensus Estimate for C.H. Robinson’s second-quarter 2022 revenues is pegged at $6.72 billion, indicating 21.4% growth year over year. The top line is likely to have been aided by improving freight market conditions.  

The Zacks Consensus Estimate for North American Surface Transportation’s revenues is pegged at $4.07 billion, indicating a 13.6% surge from the year-ago reported figure. Increase in truckload shipments, higher truckload and less-than-truckload pricing are likely to have driven the segment’s revenues.

The Zacks Consensus Estimate for Global Forwarding revenues is pegged at $2.12 billion, indicating a 46% surge from the year-ago reported figure. Higher pricing and volumes in ocean and air services units are expected to have boosted the performance of the Global Forwarding segment.

However, escalating operating expenses, primarily due to rise in personnel expenses; and selling, general and administrative expenses, might have dented C.H. Robinson’s bottom line in the first quarter.

What Our Model Says

Our proven model predicts an earnings beat for C.H. Robinson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

C.H. Robinson has an Earnings ESP of +5.24% and a Zacks Rank #2.

Highlights of Q1

C.H. Robinson's first-quarter 2022 earnings of $2.05 per share surpassed the Zacks Consensus Estimate of $1.54. Moreover, the bottom line surged 60.16% year over year. Total revenues of $6,816 million outperformed the Zacks Consensus Estimate of $5,956.7 million. The top line jumped 41.88% year over year owing to favorable truckload pricing to customers and handsome profits in ocean freight.

Other Stocks to Consider

Here are a few other stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these too have the right combination of elements to beat on their second-quarter 2022 earnings:

Kirby (KEX - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #2. KEX will release results on Jul 28. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.

KEX has a long-term earnings growth rate of 12%. 

Southwest Airlines Co. (LUV - Free Report) has an Earnings ESP of +4.64% and a Zacks Rank #3. Improved air-travel demand is likely to aid LUV’s results. LUV will release results on Jul 28.

Southwest has an expected earnings growth rate of 226.98% for the current year. LUV delivered a trailing four-quarter earnings surprise of 33.5%, on average.

Southwest has a long-term earnings growth rate of 6%.

Old Dominion Freight Line (ODFL - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank #3. ODFL will release results on Jul 27.

Old Dominion has an expected earnings growth rate of 28.9% for the current year. ODFL delivered a trailing four-quarter earnings surprise of 6.9%, on average.

ODFL has a long-term earnings growth rate of 17.98%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.