We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for C.H. Robinson (CHRW) in Q4 Earnings?
Read MoreHide Full Article
C.H. Robinson Worldwide, Inc. (CHRW - Free Report) is scheduled to report fourth-quarter 2018 results on Jan 29, after market close.
In the third quarter, the company delivered impressive results, with earnings and revenues beating the Zacks Consensus Estimate. The bottom line was favored by higher revenues and a lower effective tax rate. Also, the top line improved on a year-over-year basis.
C.H. Robinson has an impressive earnings surprise history. The company’s earnings surpassed the consensus mark in each of the trailing four quarters, the average being 8%.
Factors at Play
We expect C.H. Robinson’s fourth-quarter results to be aided by strong segmental performances on the back of impressive freight demand. Favorable pricing are likely to buoy the top line in the to-be-reported quarter.
From the fourth quarter of 2016, the company has been reporting through three segments — North American Surface Transportation (“NAST”), Global Forwarding, and Robinson Fresh. Bulk of revenues is derived from the NAST segment. The Zacks Consensus Estimate for fourth-quarter 2018 NAST revenues is pegged at $2,823 million, reflecting a rise from $2,619 million in the prior-year quarter.
Also, the current tax law, which reduces corporate tax rate significantly, is expected to drive the bottom line in the to-be-reported quarter. Furthermore, consistent improvement in the company's operating ratio (operating expenses as a percentage of net revenues) is likely to boost bottom-line growth in the fourth quarter. Lower value of this key metric bodes well for the company.
Moreover, C.H. Robinson’s growth-by-acquisition policy is also encouraging. Similar to the last few quarters, the company’s Milgram & Company buyout is expected to contribute to the top line in the to-be-reported quarter.
However, the bottom line is expected to stay under pressure in the to-be-reported quarter due to high capital expenditures and operating costs.
C.H. Robinson Worldwide, Inc. Price and EPS Surprise
Our proven model does not indicate earnings beat for C.H. Robinson this quarter. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as elaborated below.
Zacks Rank: C.H. Robinson carries a Zacks Rank #3.
Earnings ESP: C.H. Robinson has an Earnings ESP of -1.16%. The Most Accurate Estimate is at $1.19 per share, lower than the Zacks Consensus Estimate of $1.20. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Investors interested in the Zacks Transportation sector may check other companies with the right combination of elements to beat estimates in the upcoming releases:
ArcBest Corporation (ARCB - Free Report) has an Earnings ESP of +4.78% and a Zacks Rank #2. The company will release fourth-quarter 2018 results on Jan 30.
Hawaiian Holdings, Inc. (HA - Free Report) has an Earnings ESP of +1.63% and a Zacks Rank #3. The company will release fourth-quarter 2018 results on Jan 29.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
What's in Store for C.H. Robinson (CHRW) in Q4 Earnings?
C.H. Robinson Worldwide, Inc. (CHRW - Free Report) is scheduled to report fourth-quarter 2018 results on Jan 29, after market close.
In the third quarter, the company delivered impressive results, with earnings and revenues beating the Zacks Consensus Estimate. The bottom line was favored by higher revenues and a lower effective tax rate. Also, the top line improved on a year-over-year basis.
C.H. Robinson has an impressive earnings surprise history. The company’s earnings surpassed the consensus mark in each of the trailing four quarters, the average being 8%.
Factors at Play
We expect C.H. Robinson’s fourth-quarter results to be aided by strong segmental performances on the back of impressive freight demand. Favorable pricing are likely to buoy the top line in the to-be-reported quarter.
From the fourth quarter of 2016, the company has been reporting through three segments — North American Surface Transportation (“NAST”), Global Forwarding, and Robinson Fresh. Bulk of revenues is derived from the NAST segment. The Zacks Consensus Estimate for fourth-quarter 2018 NAST revenues is pegged at $2,823 million, reflecting a rise from $2,619 million in the prior-year quarter.
Also, the current tax law, which reduces corporate tax rate significantly, is expected to drive the bottom line in the to-be-reported quarter. Furthermore, consistent improvement in the company's operating ratio (operating expenses as a percentage of net revenues) is likely to boost bottom-line growth in the fourth quarter. Lower value of this key metric bodes well for the company.
Moreover, C.H. Robinson’s growth-by-acquisition policy is also encouraging. Similar to the last few quarters, the company’s Milgram & Company buyout is expected to contribute to the top line in the to-be-reported quarter.
However, the bottom line is expected to stay under pressure in the to-be-reported quarter due to high capital expenditures and operating costs.
C.H. Robinson Worldwide, Inc. Price and EPS Surprise
C.H. Robinson Worldwide, Inc. Price and EPS Surprise | C.H. Robinson Worldwide, Inc. Quote
Earning Whispers
Our proven model does not indicate earnings beat for C.H. Robinson this quarter. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as elaborated below.
Zacks Rank: C.H. Robinson carries a Zacks Rank #3.
Earnings ESP: C.H. Robinson has an Earnings ESP of -1.16%. The Most Accurate Estimate is at $1.19 per share, lower than the Zacks Consensus Estimate of $1.20. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Investors interested in the Zacks Transportation sector may check other companies with the right combination of elements to beat estimates in the upcoming releases:
Expeditors International of Washington, Inc. (EXPD - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank #1. The company will release fourth-quarter 2018 results on Feb 19. You can see the complete list of today’s Zacks #1 Rank stocks here.
ArcBest Corporation (ARCB - Free Report) has an Earnings ESP of +4.78% and a Zacks Rank #2. The company will release fourth-quarter 2018 results on Jan 30.
Hawaiian Holdings, Inc. (HA - Free Report) has an Earnings ESP of +1.63% and a Zacks Rank #3. The company will release fourth-quarter 2018 results on Jan 29.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>