What's in Store for C.H. Robinson (CHRW) in Q1 Earnings?

C.H. Robinson Worldwide, Inc. CHRW is slated to release first-quarter 2022 earnings numbers on Apr 27, after market close.

The Zacks Consensus Estimate for the company’s first-quarter earnings has been revised downward by 1.3% in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters while missing the same in one.

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

C.H. Robinson Worldwide, Inc. Price and EPS Surprise

C.H. Robinson Worldwide, Inc. price-eps-surprise | C.H. Robinson Worldwide, Inc. Quote

Factors to Note

Amid improved freight market conditions and tight capacity, C.H. Robinson’s first-quarter performance is expected to have benefited from higher pricing and volumes.

Increase in truckload shipments, and higher truckload and less-than-truckload ("LTL") pricing are likely to have driven revenues at the North American Surface Transportation (“NAST”) segment. The Zacks Consensus Estimate for NAST’s gross revenues in the first quarter indicates a 15.1% rise from the year-ago reported number.

Higher pricing and volumes in ocean and air services units are expected to have boosted performance of the Global Forwarding segment. The Zacks Consensus Estimate for gross revenues at the Global Forwarding unit suggests a 43.1% jump from the year-ago reported number.

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

Earnings Whispers

Our proven Zacks 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. However, this 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 -1.76% as the Most Accurate Estimate is pegged at $1.51, below the Zacks Consensus Estimate of $1.53. 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 #3.

Highlights of Q4 Earnings

C.H. Robinson’s fourth-quarter 2021 earnings of $1.74 per share fell short of the Zacks Consensus Estimate of $1.85. However, the bottom line surged 61.1% year over year. Total revenues of $6,501.8 million outperformed the Zacks Consensus Estimate of $6,190.8 million. The top line jumped 42.9% year over year owing to higher pricing and volumes across most of the company’s service lines.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Old Dominion Freight Line ODFL and Expeditors International of Washington EXPD. These companies possess the right combination of elements to beat on earnings in this reporting cycle.

Old Dominion has an Earnings ESP of +1.14% and a Zacks Rank #3. ODFL is set to release first-quarter 2022 earnings numbers on Apr 27.

Old Dominion’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.5%.

Expeditors has an Earnings ESP of +3.12% and a Zacks Rank #1. EXPD will announce first-quarter 2022 results on May 3.

Expeditors’ earnings also trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 34.2%.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.