C.H. Robinson Expected to Post Strong Q3 Profit Amid Solid Market Gains
With a market cap of $12.7 billion, C.H. Robinson Worldwide, Inc. (CHRW) is a top third-party logistics provider. Based in Eden Prairie, Minnesota, this company offers freight transportation services and supply chain solutions across various industries, tapping into a network of approximately 45,000 transportation partners worldwide. The company plans to announce its fiscal Q3 earnings results after the market closes on Wednesday, Oct. 30.
Profit Projections Show Positive Growth
Ahead of the earnings report, analysts forecast that C.H. Robinson will report a profit of $1.12 per share, which marks a 33.3% increase from last year’s $0.84 per share. Over the past four quarters, the company has met or exceeded Wall Street’s bottom-line estimates three times, with a notable 21.1% outperformance of the consensus EPS estimate in Q2.
Strong EPS Forecast for 2024
Looking to fiscal 2024, analysts predict that C.H. Robinson will achieve an EPS of $4.16, representing a significant increase of 26.1% from the $3.30 recorded in fiscal 2023.
C.H. Robinson Outperforming Market Indices
So far this year, CHRW has increased 25.3%, surpassing the S&P 500 Index’s ($SPX) 22.3% rise and the Industrial Select Sector SPDR Fund’s (XLI) 19.8% gain in the same period.
Recent Earnings Impress Investors
After reporting impressive results in its Q2 earnings release on July 31, C.H. Robinson’s stock jumped 14.8%. The company revealed better-than-expected adjusted EPS of $1.15 and successfully managed operating expenses, lowering them by 4.4%. This resulted in a 3% increase in gross profit and enhanced adjusted operating margins. Furthermore, improved pricing in its ocean services division countered some challenges in the domestic trucking sector, demonstrating the company’s resilience in a tough economic landscape.
Analysts Maintain Cautious Outlook
Current analysts’ ratings for C.H. Robinson stock are mixed, leaning towards caution with a general “Hold” recommendation. Out of 24 analysts, there are six “Strong Buys,” 16 “Holds,” and two “Strong Sells.” Compared to three months ago, this outlook has brightened, as the number of “Strong Buy” recommendations has increased from four. Presently, CHRW trades above the average analyst price target of $104.86.
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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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