Back to top

Image: Bigstock

Is a Beat in Store for C.H. Robinson in Q4 Earnings?

Read MoreHide Full Article

C.H. Robinson (CHRW - Free Report) is scheduled to report fourth-quarter 2024 results on Jan. 29, after market close.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for CHRW’s fourth-quarter 2024 earnings per share has been revised upward by 1.8% in the past 60 days to $1.12. The consensus mark implies a massive 124% surge from the year-ago actuals. The Zacks Consensus Estimate for revenues is pegged at $4.47 billion, indicating a 5.9% increase from fourth-quarter 2023 actuals.

Zacks Investment ResearchImage Source: Zacks Investment Research

CHRW has an impressive earnings history. It surpassed the Zacks Consensus Estimate in three of the past four quarters and missed the mark on the other occasion, the average beat being 10.3%.

Factors Shaping CHRW’s Upcoming Results

An improvement in freight market conditions may aid top-line results in the fourth quarter. Our estimate for revenues from the service line transportation segment is pegged at $4.17 billion, up 6% from the fourth-quarter 2023 actuals. Meanwhile, the forecast for revenues from the sourcing segment is pegged at $380.8 million.

Our estimates for North American Surface Transportation’s fourth-quarter revenues are pegged at $3 billion, which indicates a 0.3% increase from the year-ago reported figure. Revenues from the Global Forwarding segment are anticipated to be $878 million, which implies a 23.3% increase from the year-ago reported figure.

We also expect CHRW's operational efficiency, driven by its robust cost-cutting initiatives, to have bolstered the company’s bottom-line performance in the to-be-reported quarter.  However, high capital expenditure may have an adverse impact on the company’s prospects in the December-end quarter.

What Our Model Says About CHRW

Our proven model predicts 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

CHRW has an Earnings ESP of +5.71% (the Most Accurate Estimate is currently pegged at $1.18, which is 6 cents above the Zacks Consensus Estimate) and a Zacks Rank #2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are a few other stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.

JetBlue Airways (JBLU - Free Report) has an Earnings ESP of +5.02% and a Zacks Rank #3 at present. JBLU is slated to release fourth-quarter 2024 results on Jan. 28. 

JBLU has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 62.8%.

Southwest Airlines (LUV - Free Report) has an Earnings ESP of +6.78% and a Zacks Rank #2 at present. LUV is set to release fourth-quarter results on Jan. 30. Upbeat air-travel demand is likely to have aided the quarterly performance.

The Zacks Consensus Estimate for fourth-quarter 2024 earnings has moved north 32.2% in the past 90 days. LUV’s earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, delivering an average surprise of 111.6%.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Southwest Airlines Co. (LUV) - free report >>

JetBlue Airways Corporation (JBLU) - free report >>

C.H. Robinson Worldwide, Inc. (CHRW) - free report >>

Published in