C.H. Robinson Set to Report Strong Q1 Earnings Growth

Eden Prairie, Minnesota-based C.H. Robinson Worldwide, Inc. (CHRW) provides freight transportation and logistics services both domestically and internationally. The company, which boasts a market cap of $10.7 billion, operates through its North American Surface Transportation and Global Forwarding segments.

Upcoming Earnings Report and Expectations

CHRW is expected to release its first-quarter earnings after the close of markets on Wednesday, April 30. Analysts are predicting an adjusted EPS of $1.02, which represents an impressive 18.6% increase from $0.86 reported in the same quarter last year. Notably, the company has beaten analysts’ bottom-line expectations in each of the past four quarters.

Forecast for Fiscal 2025 and 2026

For the entirety of fiscal 2025, earnings per share are expected to reach $4.72, marking a growth of 4.7% from the $4.51 per share reported in fiscal 2024. Furthermore, forecasts indicate that earnings might increase significantly, reaching $5.51 per share in fiscal 2026, representing a 16.7% year-over-year surge.

Stock Performance and Market Reflection

Over the past year, CHRW’s stock prices have increased by 29.7%, outpacing the S&P 500 Index, which saw 8.2% gains, and the Industrial Select Sector SPDR Fund, which rose by 5.7% during the same period.

Recent Trading Session and Financial Pressure

Following its mixed Q4 results released on Jan. 29, CHRW’s stock prices fell by 6.9%. The company’s transportation revenues faced challenges, declining by 1.5% year-over-year to $3.9 billion. This decline contributed to an overall revenue decrease of approximately $37.2 million, bringing total revenue to $4.2 billion, which was over 6% below analysts’ expectations, causing some investor anxiety.

Despite these challenges, C.H. Robinson has implemented disciplined cost management strategies, aiding in margin improvement. The adjusted net income for the quarter soared by 148.9% year-over-year to $148.1 million, and its adjusted EPS of $1.21 exceeded consensus estimates by more than 8%.

Analysts’ Consensus and Future Outlook

The general consensus for CHRW remains cautiously optimistic, maintaining a “Moderate Buy” rating. Among the 25 analysts covering the stock, there are 12 “Strong Buys,” one “Moderate Buy,” 10 “Holds,” and two “Strong Sells.” The mean price target sits at $111.83, indicating a potential upside of 21.5% from current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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