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Will C.H. Robinson's (CHRW) Q1 Earnings be a Let-Down Again?

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C.H. Robinson Worldwide, Inc. (CHRW - Free Report) is slated to release first-quarter 2020 earnings numbers on Apr 28, after market close.

The Zacks Consensus Estimate for first-quarter earnings has been revised 5.3% downward in the past 60 days.

Now let’s take a look at the factors that might have impacted the company’s first-quarter performance.

Persistent freight market softness, perhaps aggravated by the coronavirus outbreak, is expected to have weighed on volumes in the first quarter.
 
As has been the case over the past few quarters, the company’s North American Surface Transportation (NAST) division (including Robinson Fresh) is expected to have performed disappointingly in the first quarter due to weak pricing. The Zacks Consensus Estimate for NAST net revenues suggests a 3.6% decline from the fourth-quarter 2019 reported figure.

Additionally, Global Forwarding revenues are likely to have been affected by low pricing and contraction in volumes at the ocean and air units. The consensus mark for net revenues at the Global Forwarding segment suggests a 7.8% decline from the fourth-quarter 2019 reported number.

Amid weak freight demand, low trucking volumes are anticipated to have persisted in the first quarter. This in all probability willget reflected on truckload revenues.

However, last year’s buyouts of Space Cargo and Dema Service are expected to have driven the top line, partly making up for the apprehended contraction in volumes.

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


Earnings Whispers

Our quantitative model doesn’t conclusively predict an earnings beat for C.H. Robinson in the first quarter of 2020. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. However, that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: C.H. Robinson has an Earnings ESP of -2.90% as the Most Accurate Estimate is pegged at 69 cents and the Zacks Consensus Estimate at 71 cents. 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 #4 (Sell).

Highlights of Q4 Earnings

In the last reported quarter, the company witnessed a negative earnings surprise of 25.5%. Total revenues also fell shy of the Zacks Consensus Estimate. Moreover, the top line and the bottom line declined year over year due to a weak freight environment.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Covenant Transportation Group, Inc. , Valaris plc (VAL - Free Report) and Golar LNG Limited (GLNG - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Covenant Transportation has an Earnings ESP of +10.00% and a Zacks Rank #3.

Valaris has an Earnings ESP of +0.27% and a Zacks Rank of 3. The company will announce first-quarter results on Apr 30.

Golar LNG has an Earnings ESP of +1,100.00% and carries a Zacks Rank #2.

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