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C.H. Robinson Worldwide, Inc. CHRW is slated to release fourth-quarter 2021 earnings numbers on Feb 2, before market opens.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings has increased by 1.4% in the past 60 days at $1.85. The company has an impressive earnings history, having outperformed the Zacks Consensus Estimate in all of the past four quarters. It has a trailing four-quarter earnings surprise of 22%, on average.
Let’s take a look at the factors that are expected to have influenced the company’s performance in the to-be-reported quarter.
C.H. Robinson Worldwide, Inc. Price and EPS Surprise
C.H. Robinson Worldwide, Inc. price-eps-surprise | C.H. Robinson Worldwide, Inc. Quote
Gradual recovery in the economy and improving freight-market conditions are likely to have aided C.H. Robinson’s fourth-quarter top line. Favorable truckload pricing and an increase in less than truckload (“LTL”) volumes are expected to have boosted revenues in the North American Surface Transportation (“NAST”) division, the primary revenue generator. The Zacks Consensus Estimate for fourth-quarter 2021 net NAST revenues indicates an 11.3% rise sequentially.
Rising operating expenses (stemming from a rise in personnel expenses and selling, general and administrative expenses) are expected to have hurt the carrier’s fourth-quarter bottom line.
The consensus mark for Global Forwarding net revenues indicates a 7.1% decline from third-quarter 2021’s reported number, which is likely to have been caused by the supply-chain crisis.
Earnings Whispers
Our proven Zacks model predicts an earnings beat for C.H. Robinson this time around. This is because the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: C.H. Robinson has an Earnings ESP of +4.79% as the Most Accurate Estimate is pegged at $1.93, while the Zacks Consensus Estimate is at $1.85. 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 Q3 Earnings
C.H. Robinson’s third-quarter 2021 earnings of $1.85 per share surpassed the Zacks Consensus Estimate of $1.41. The bottom line surged 85% year over year. Total revenues of $6,263.7 million outperformed the Zacks Consensus Estimate of $5,377.9 million. The top line increased 48.3% year over year.
Other Stocks to Consider
Investors interested in the broader Transportation sector may consider Expeditors International of Washington, Inc. EXPD, Werner Enterprises WERN and Air Lease Corporation AL, as these stocks possess the right combination of elements to beat on earnings this reporting cycle.