Will Freight Woes Mar C.H. Robinson's (CHRW) Q4 Earnings?
Zacks Investment Research | Jan 22, 2020 10:17PM ET
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is slated to release fourth-quarter 2019 results on Jan 28, after the market closes.
The Zacks Consensus Estimate for fourth-quarter earnings has been revised downward by 6.3% in the past 90 days. Given this bleak outlook, let’s take a look at the factors that might have impacted the company’s fourth-quarter performance.
Continued weakness in freight environment due to the U.S.-China trade tensions is likely to have affected volumes. The lower volumes in turn, might get reflected in the company’s top line.
The company’s Global Forwarding segment is expected to have put up a dismal show in the soon-to-be-reported quarter with declines in air and ocean volumes as a result of the trade dispute. Evidently, the Zacks Consensus Estimate for gross revenues at the Global Forwarding segment indicates a 6.8% decline from the year-ago reported quarter.
Revenues at the North American Surface Transportation (NAST) segment (including Robinson Fresh) are also anticipated to have declined in the fourth quarter due to weak pricing. The consensus mark for NAST revenues suggests a 1.1% dip from that reported a year ago.
Amid the weak freight demand, excess truck capacity is weighing on the company’s truckload volumes and pricing. This headwind might reflect on the truckload revenues.
However, the Space Cargo and Dema Service buyouts of last March and May, respectively, are expected to have driven the top line, partly offsetting the adversity from substantial contraction in volumes.
C.H. Robinson Worldwide, Inc. Price and EPS Surprise
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