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Factors Likely to Shape Radiant Logistics' (RLGT) Q4 Earnings

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Radiant Logistics (RLGT - Free Report) is scheduled to release its fourth-quarter fiscal 2019 results on Sep 12, after market close. The Zacks Consensus Estimate is 12 cents for quarterly earnings and $220.5 million for revenues.

In the last reported quarter, this transportation company’s earnings surpassed the consensus mark by 3 cents. The bottom line was aided by lower costs on transportation and other services. Notably, the company seems to be on a firm footing as far as earnings surprise is concerned, having outpaced the Zacks Consensus Estimate in each of the trailing four quarters as depicted in the chart below.

Radiant Logistics, Inc. Price and EPS Surprise

Radiant Logistics, Inc. Price and EPS Surprise

Radiant Logistics, Inc. price-eps-surprise | Radiant Logistics, Inc. Quote

Investors are keeping their fingers crossed and hoping that Radiant Logistics will deliver a solid performance and surpass the earnings estimate in the to-be-reported quarter as well.

However, our model indicates that the company might not beat on earnings in fourth-quarter fiscal 2019. 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. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Radiant Logistics has an Earnings ESP of 0.00%. The Most Accurate Estimate is in line with the Zacks Consensus Estimate.

Zacks Rank: Radiant Logistics carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Let’s delve deep and find out the factors likely to impact Radiant Logistics’ quarterly results.

As in the past few quarters, we expect the company’s U.S. segment to perform impressively. This, in turn, will aid Radiant Logistics' top line. This is because the segment accounts for the bulk of the company’s revenues. Within the U.S. segment, transportation and value-added services are anticipated to realize solid net revenues in the soon-to-be-reported quarter.

Furthermore, the company is anticipated to generate robust cash flows backed by impressive segmental results. Moreover, the reduced cost of transportation and other services are likely to support bottom-line growth in the to-be-reported quarter. However, higher personnel costs may be a hindrance.

Key Picks

Investors may consider the following stocks as they possess the right combination of elements to beat on earnings in its next quarterly release.

Oracle (ORCL - Free Report) has an Earnings ESP of +0.10% and a Zacks Rank of 3. The company is slated to release its first-quarter fiscal 2020 results on Sep 12.

General Mills (GIS - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. The company is slated to report first-quarter fiscal 2020 earnings on Sep 18.

Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank #3. The company is slated to report fourth-quarter fiscal 2019 earnings on Oct 3.

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