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What's in Store for C.H. Robinson (CHRW) in Q3 Earnings?

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C.H. Robinson Worldwide (CHRW - Free Report) is scheduled to report third-quarter 2023 results on Nov 1, after market close.

C.H. Robinson has underperformed the Zacks Consensus Estimate in three of the preceding four quarters (met once), the average miss being 11%.

Let’s see how things have shaped up for C.H. Robinson this earnings season.

Q3 Expectations

The Zacks Consensus Estimate for C.H. Robinson’s third-quarter 2023 revenues is pegged at $4.37 billion, indicating a 27.4% year-over-year decline. The top line is likely to have been weighed down by lower pricing in CHRW’s ocean and truckload services.

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

Our estimate for North American Surface Transportation’s third-quarter revenues indicates a 20% decrease from a year ago. Lower truckload pricing, reflecting softening freight demand, might have affected segmental revenues.
Our estimate for Global Forwarding’s third-quarter revenues predicts a 51% plunge from the year-ago figure. The downside is expected to have been caused by lower pricing in CHRW’s ocean services.

Further, escalating operating expenses, primarily due to a rise in personnel expenses, and selling, general and administrative expenses, might have dented C.H. Robinson’s bottom line in the third quarter. The Zacks Consensus Estimate for CHRW’s third-quarter 2023 earnings is pegged at 82 cents, suggesting a 53.9% year-over-year fall.

Our consensus estimate for All Other and Corporate (Robinson Fresh, Managed Services and Other Surface Transportation) third-quarter revenues forecasts an 11% jump from the year-ago level.

What Our Model Says

Our proven model does not conclusively predict 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. But that’s not the case here. 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 -1.41% and a Zacks Rank #5 (Strong Sell).

Highlights of Q2

C.H. Robinson’s second-quarter 2023 quarterly earnings of 90 cents per share came in line with the Zacks Consensus Estimate but declined 66.2% year over year. Total revenues of $4421.9 million lagged the Zacks Consensus Estimate of $4646.5 million and tumbled 35% year over year owing to lower pricing in the company’s ocean and truckload services.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider as our model shows that these have the right combination of elements to beat on their third-quarter 2023 earnings.

Golar LNG Limited (GLNG - Free Report) has an Earnings ESP of +18.00% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

GLNG is scheduled to release third-quarter 2023 results on Nov 21. Golar LNG's efforts to reward its shareholders through share buybacks look encouraging.

Copa Holdings, S.A. (CPA - Free Report) has an Earnings ESP of +4.60% and a Zacks Rank #3. CPA is set to post third-quarter 2023 numbers on Nov 15.

 Upbeat air-travel demand has been aiding Copa Holdings' revenues.

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

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