C.H. Robinson Worldwide Inc. (NASDAQ:CHRW) is set to release first-quarter 2016 financial results after the market closes on Apr 26.
Last quarter, the company posted a positive earnings surprise of 1.15%. Also, the company’s earnings have surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 2.77%. Let’s see how things are shaping up for this announcement.
Factors at Play
C.H Robinson’s Truckload business remains challenged due to the uncertainties associated with the market. Also, the current trend of road freight conversion to rail intermodal may impede the trucking business. Further, the company predicts a rise in expenses in the Less-than Truckload (LTL) space.
Further, C.H. Robinson witnessed some significant cyclical fluctuations with regard to capacity, availability and pricing, marking a trend that it expects to continue. However, C.H. Robinson’s network and service capabilities in freight services will continue to strengthen, and boost its presence in the global freight market.
Earnings Whispers
Our proven model does not conclusively show that C.H. Robinson is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for the company currently stands at 0.00%. This is because both the Most Accurate estimate and Zacks Consensus Estimate are 81 cents.
Zacks Rank: C.H. Robinson carries a Zacks Rank #4 (Sell). As it is, we caution against Sell-rated stocks (#4 or 5) going into an earnings announcement.
Stocks to Consider
Here are some companies you may want to consider instead, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
United Continental Holdings, Inc. (NYSE:UAL) has an Earnings ESP of +2.26% and a Zacks Rank #3.
American Railcar Industries, Inc. (NASDAQ:ARII) has an Earnings ESP of +5.30% and a Zacks Rank #3.
Canadian National Railway Company (NYSE:CNI) has an Earnings ESP of +1.47% and a Zacks Rank #1.
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AMER RAILCAR (ARII): Free Stock Analysis Report
CDN NATL RY CO (CNI): Free Stock Analysis Report
CH ROBINSON WWD (CHRW): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
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