Core Insights - Growth investors focus on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks can be challenging [1] - The Zacks Growth Style Score helps in identifying promising growth stocks, with C.H. Robinson Worldwide (CHRW) being a recommended stock due to its favorable Growth Score and top Zacks Rank [2] Earnings Growth - Earnings growth is crucial for attracting investor attention, with double-digit growth being highly desirable [4] - C.H. Robinson's projected EPS growth is 11.4% this year, significantly outperforming the industry average of -0.3% [5] Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks, indicating efficiency in generating sales [6] - C.H. Robinson has an S/TA ratio of 3.27, compared to the industry average of 0.81, indicating superior efficiency [6] Sales Growth - Sales growth is another critical factor, with C.H. Robinson expected to achieve a sales growth of 1.8% this year, while the industry average is 0% [7] Earnings Estimate Revisions - Trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - C.H. Robinson's current-year earnings estimates have been revised upward, with a 1.9% increase in the Zacks Consensus Estimate over the past month [9] Conclusion - C.H. Robinson has earned a Growth Score of B and a Zacks Rank 2, indicating it is a potential outperformer and a solid choice for growth investors [10]

Core Insights - The earnings season reveals contrasting corporate outlooks compared to the uncertainty from the Federal Open Market Committee (FOMC) [1] - Consumer-facing companies are challenged to maintain pricing power while recovering lost volumes, indicating a shift in the strategy for revenue generation [1] Revenue and Volume Analysis - Coca-Cola reported a 9% increase in pricing and a 2% increase in unit case volume, demonstrating effective pricing strategies despite inflationary pressures [2] - Unilever experienced a significant deceleration in pricing from over 8% to 1% year-over-year, yet maintained strong bottom-line performance due to previous pricing strategies [6] - Sherwin-Williams managed to raise prices in response to increased input costs, and as those costs decreased, they maintained pricing while volumes began to recover [10] Margin Performance - Coca-Cola's operating margin improved to 21.3% from 20.1% year-over-year, driven by strong business performance and refranchising of bottling operations, despite currency headwinds and increased marketing investments [3][4] - Sherwin-Williams reported a gross margin of 48.8%, up 280 basis points from the previous year, indicating effective cost management and pricing strategies [7] Market Dynamics - The current earnings season highlights that corporate earnings may not align with broader economic concerns, suggesting that the stock market's performance can diverge from economic indicators [11] - Companies across various sectors, including those facing headwinds, are demonstrating resilience and adaptability in their earnings reports [9]

Core Viewpoint - C.H. Robinson Worldwide demonstrated strong cost control, resulting in an earnings beat despite a challenging operating environment for transportation companies [1][2]. Financial Performance - The company reported earnings of $1.15 per share for the second quarter, surpassing the earnings estimate of $0.96 per share, with total sales of $4.5 billion [2]. - Revenue increased by only 1.4% year over year, while operating expenses were reduced by 4.4%, leading to a 3% rise in gross profit and a 600-basis-point improvement in adjusted operating margin [3]. Market Position and Strategy - C.H. Robinson's truckload business has gained market share for the fourth consecutive quarter, focusing on margin improvement [4]. - The revenue growth was supported by higher pricing in the ocean services division, which helped mitigate the ongoing weakness in domestic trucking [4]. Industry Context - The transportation industry is currently facing a difficult operating environment due to economic concerns leading to reduced demand for transport services [2]. - Geopolitical issues and disruptions in shipping lanes are contributing to higher prices in overseas markets, a trend expected to persist [4]. Company Reputation - C.H. Robinson is recognized as a leading operator in the transportation logistics industry, showcasing effective management strategies during challenging macroeconomic conditions [5].

Core Viewpoint - C.H. Robinson Worldwide (CHRW) has experienced a decline in stock price, prompting a revision of the rating from sell to hold due to strong internal execution despite a challenging macroeconomic environment [2]. Financial Performance - In Q2 2024, CHRW reported net revenue of $687 million, which was below the consensus estimate of $4.54 billion, but still showed a 1.4% year-over-year growth compared to a 4.3% decline in Q1 2024 [3]. - The North American Surface Transportation (NAST) segment saw a revenue decline of 2.9% to $2.989 billion, while Global Forwarding grew by 11.1% and Sourcing grew by 1.7% [3]. - Profitability metrics were strong, with gross margin at 15.3% (consensus 14.9%), EBITDA at 4.9% (consensus ~4%), and adjusted net margin at 3.1% (consensus 2.52%) [3]. - Adjusted EPS was reported at $1.15, significantly beating the consensus estimate of $0.959 by approximately 20% [3]. Operational Efficiency - Management's turnaround strategy focuses on improving operational efficiency, leveraging digital solutions, and prioritizing higher margin contracts [3]. - The EBIT margin for the NAST segment expanded by approximately 400 basis points year-over-year to 33.6%, despite a 2% decline in truckload pricing [3]. - The average headcount in the NAST segment decreased by around 13%, while volume grew by 150 basis points, outperforming peers [3]. Market Conditions - Rising spot rates pose a potential risk to contracted prices, as many contracts signed last year were at a premium to spot rates, which could lead to margin compression for CHRW [5]. - The geopolitical situation in the Middle East may negatively impact the Global Forwarding segment, although it could temporarily drive high volume due to demand pull-forward [6]. Valuation - CHRW is currently trading at approximately 22x forward earnings, which is at the higher end of its historical range, indicating that the market is pricing in significant earnings growth [7]. - The consensus has historically overestimated CHRW's EPS performance, with the stock experiencing a notable decline after missing earnings estimates in the past [7]. Conclusion - The current rating for CHRW is neutral, acknowledging management's effective operational improvements while highlighting the uncertainties posed by the macroeconomic environment [8].

Financial Performance - Total revenues increased by 1.4% year-over-year to $4.5 billion in Q2 2024[9] - Adjusted gross profits increased by 3.3% year-over-year to $687 million in Q2 2024[9] - Income from operations increased by 34.3% year-over-year to $178 million in Q2 2024[9] - Net income per share increased by 29.6% year-over-year to $1.05, with adjusted net income per share at $1.15[9] Segment Results - NAST truckload volume increased by 1.5% year-over-year, outpacing market indices for the fourth consecutive quarter[8, 12, 14] - NAST adjusted income from operations increased by 26.6% year-over-year[8] - Global Forwarding ocean volume grew by 4.0% year-over-year, and air tonnage grew by 11.0% year-over-year[10] - Global Forwarding adjusted income from operations increased by 46.5% year-over-year[8] Strategic Initiatives - The company is focused on deploying a new operating model to improve service, gain profitable market share, optimize structure costs, and streamline processes[8] - The company is investing in improving customer and carrier experience and decoupling volume growth from headcount growth[8] - The company is streamlining and automating processes to drive profitable growth, focusing on scalable and digital solutions to improve customer and carrier experiences[18]

Financial Data and Key Metrics - Q2 2024 total revenues were $4.5 billion, with adjusted gross profit (AGP) of $687 million, up 3% YoY, driven by a 5% increase in NAST and a 3% increase in Global Forwarding [28] - AGP per business day improved through the quarter: down 5% in April, up 1% in May, and up 15% in June [28] - Adjusted income from operations increased 32% YoY for the full enterprise [7] - Q2 personnel expenses were $361.2 million, including $9.4 million in restructuring charges, down 3.4% YoY excluding restructuring [32] - Q2 SG&A expenses were $148.1 million, including $5.7 million in restructuring charges, down 7.9% YoY excluding restructuring [33] - Q2 capital expenditures were $19.3 million, down 20.6% YoY [34] Business Line Performance - NAST truckload volume increased 1.5% sequentially and YoY, outpacing market indices for the fourth consecutive quarter [17] - NAST adjusted gross profit per truckload increased 6.5% sequentially and YoY, driven by improved pricing discipline and revenue management [19] - LTL shipments increased 1.5% YoY and 3.5% sequentially, driven by strength in retail consolidation services [20] - Global Forwarding ocean AGP increased 8.6% YoY, driven by a 4% increase in shipments and a 4.5% increase in AGP per shipment [31] Market Performance - The global freight market remains volatile, with capacity oversupply and muted seasonality in Q2 [17][18] - Red Sea disruptions have extended transit times, causing ocean capacity strain and port congestion, particularly in the Asia to Europe trade lane [29][30] - Ocean rates rose in May and June due to capacity tightening, but declined slightly in July, remaining elevated compared to 2023 [30] Strategy and Industry Competition - The company is focused on its four core modes: North American truckload, LTL, global ocean, and air [12] - The sale of the European Surface Transportation business aligns with the strategy to focus on profitable growth in core modes [12] - The company is leveraging generative AI and digital tools to improve productivity, customer experience, and operational efficiency [6][24][25] - The new Robinson operating model emphasizes lean principles, transparency, and accountability, driving improvements in execution [8][9][10] Management Commentary on Operating Environment and Future Outlook - The company is navigating an elongated freight recession but is executing better at this point in the cycle [6] - Management expects productivity improvements to drive a 15% increase in shipments per person per day in NAST and a 10% increase in Global Forwarding in 2024 [12] - The company is preparing for a freight market rebound with a disciplined operating model that decouples headcount growth from volume growth [13] - Management is confident in the team's ability to drive higher levels of discipline and operational execution [10] Other Important Information - The company announced the sale of its European Surface Transportation business, which accounted for 2% of enterprise AGP in Q2 [12][74] - The company expects to hold an Investor Day on December 12, 2024, to share more about its strategy and financial targets [40] Q&A Session Summary Question: AGP Margin Improvement and Market Dependency - The company attributes AGP margin improvement to the new operating model and disciplined pricing strategies, with further improvements expected as the model is fully implemented [42][43][44] Question: Capacity and Competitive Dynamics - Carrier exits have accelerated but not enough to materially impact the market, with customers focusing on long-term supply chain solutions [48][49] Question: NAST Profitability Through the Cycle - Management remains confident in achieving long-term operating margins of 40% for NAST and 30% for Global Forwarding, despite current market challenges [51] Question: Monthly AGP Trends and Forward Outlook - June saw strong AGP growth due to seasonal factors and easier YoY comparisons, but July trends are uncertain [54][55] Question: Headcount Reduction and Productivity - Headcount is down 10% YoY, with slower reductions expected in the second half of 2024, as the company continues to focus on productivity improvements [60][72] Question: Sales Strategy and Pricing Trends - The company is reorganizing its sales process to improve efficiency and is actively growing its sales team to capture growth opportunities [63][64] Question: Market Demand and Spot Activity - Route guides are holding steady, with customers focusing on long-term supply chain health, but no immediate market inflection is expected [68] Question: Portfolio Strategy and Future Sales - The company is focused on its four core modes and has no immediate plans for further portfolio sales beyond the European Surface Transportation business [73][83] Question: Incentive Compensation Structure - The company has modified its incentive compensation structure to align with the new operating model, with further tweaks possible as the market evolves [77][78] Question: NAST AGP Trends and Strategic Sales - NAST AGP typically sees a slight decline from Q2 to Q3, but muted seasonality makes it difficult to predict future trends [82]

Core Viewpoint - C.H. Robinson Worldwide (CHRW) reported a slight year-over-year revenue increase of 1.4% for the quarter ended June 2024, with a notable EPS surprise of +21.05% compared to analyst expectations [1][2]. Revenue Performance - Total Revenue for NAST was $2.99 billion, which is -2.9% lower than the average estimate of $3.09 billion [3]. - Total Revenue for All Other and Corporate was $572.22 million, slightly below the average estimate of $578.55 million, reflecting a +1.7% year-over-year change [4]. - Total Revenue for Global Forwarding reached $921.22 million, exceeding the average estimate of $808.96 million, marking an +18.1% year-over-year increase [5]. Adjusted Gross Profit - Adjusted Gross Profit for NAST was $419.66 million, surpassing the average estimate of $410.09 million [6]. - Adjusted Gross Profit for All Other and Corporate was $83.69 million, below the average estimate of $90.27 million [7]. - Adjusted Gross Profit for Global Forwarding was $184.07 million, exceeding the average estimate of $175.13 million [8]. Operational Income - Income from operations for Global Forwarding was $40.98 million, lower than the average estimate of $49.69 million [11]. - Income from operations for All Other and Corporate showed a loss of -$3.99 million, which was better than the average estimate of -$16.36 million [11]. Stock Performance - C.H. Robinson shares have returned +3.7% over the past month, outperforming the Zacks S&P 500 composite, which saw a -0.4% change [12].

[C.H. Robinson 2024 Second Quarter Results](index=1&type=section&id=C.H.%20Robinson%20Reports%202024%20Second%20Quarter%20Results) [Financial Highlights](index=1&type=section&id=Second%20Quarter%20Key%20Metrics) C.H. Robinson reported strong Q2 profitability with gross profits up 3.0%, income from operations surging 34.3%, and diluted EPS increasing 29.6% to $1.05 Second Quarter Key Metrics | Metric | Q2 2024 | YoY Change | Seq. Change | | :--- | :--- | :--- | :--- | | Gross Profits | $676.5 million | +3.0% | +4.5% | | Income from Operations | $178.1 million | +34.3% | +40.1% | | Adjusted Operating Margin | 25.9% | +600 bps | - | | Diluted EPS | $1.05 | +29.6% | - | | Adjusted EPS | $1.15 | +25.0% | - | | Cash from Operations | $166.4 million | -$58.4 million | - | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Dave Bozeman emphasized improved execution and market share growth in truckload, driven by the new operating model and a strategy to expand operating margins through Lean practices and digital enhancements - The company is implementing a new Robinson operating model to improve execution and performance[4](index=4&type=chunk) - Grew truckload market share for the fourth consecutive quarter with a focus on margin improvement[4](index=4&type=chunk) - The company's long-term strategy is to generate incremental operating income by growing market share and expanding operating margins through Lean practices and digital expansion[4](index=4&type=chunk) [Consolidated Financial Performance](index=3&type=section&id=Consolidated%20Financial%20Performance) Consolidated results show a slight Q2 revenue increase and significant profitability improvement, with income from operations up 34.3% year-over-year due to higher adjusted gross profits and reduced operating expenses [Second Quarter 2024 Results (vs. Q2 2023)](index=3&type=section&id=Summary%20of%20Second%20Quarter%20of%202024%20Results) Q2 2024 total revenues increased 1.4% to $4.5 billion, with adjusted gross profits up 3.3% to $687.4 million, driving a 34.3% rise in income from operations to $178.1 million | Metric | Q2 2024 | YoY Change | | :--- | :--- | :--- | | Total Revenues | $4.5 billion | +1.4% | | Adjusted Gross Profits | $687.4 million | +3.3% | | Operating Expenses | $509.3 million | -4.4% | | Income from Operations | $178.1 million | +34.3% | | Net Income | $126.3 million | +29.7% | | Diluted EPS | $1.05 | +29.6% | - Personnel expenses decreased by **4.3%** due to cost optimization efforts, with average employee headcount declining by **10.0%**[6](index=6&type=chunk) [Year-to-Date 2024 Results (vs. YTD 2023)](index=4&type=section&id=Summary%20of%202024%20Year-to-Date%20Results) Year-to-date 2024 total revenues decreased 1.5% to $8.9 billion, while income from operations increased 3.9% to $305.2 million, driven by reduced operating expenses | Metric | YTD 2024 | YoY Change | | :--- | :--- | :--- | | Total Revenues | $8.9 billion | -1.5% | | Adjusted Gross Profits | $1.3 billion | -0.4% | | Operating Expenses | $1.0 billion | -1.7% | | Income from Operations | $305.2 million | +3.9% | | Net Income | $219.2 million | +3.3% | | Diluted EPS | $1.83 | +3.4% | - Personnel expenses decreased by **2.6%** year-to-date, driven by a **10.8%** decline in average employee headcount[10](index=10&type=chunk) [Segment Performance](index=5&type=section&id=Segment%20Performance) Segment performance was driven by strong profitability gains in NAST and Global Forwarding, with NAST's income from operations up 19.7% and Global Forwarding's surging 38.2% [North American Surface Transportation (NAST)](index=5&type=section&id=North%20American%20Surface%20Transportation%20(NAST)%20Results) NAST Q2 total revenues decreased 2.9% to $3.0 billion, but adjusted gross profits increased 4.8% to $419.7 million, leading to a 19.7% rise in income from operations to $141.1 million | NAST - Q2 2024 | Amount | YoY Change | | :--- | :--- | :--- | | Total Revenues | $3.0 billion | -2.9% | | Adjusted Gross Profits | $419.7 million | +4.8% | | Income from Operations | $141.1 million | +19.7% | | Adjusted Operating Margin | 33.6% | +420 bps | - Truckload adjusted gross profits increased **7.9%** due to a **6.5%** increase in adjusted gross profit per shipment and a **1.5%** increase in shipments[14](index=14&type=chunk) - LTL adjusted gross profits increased **6.5%**, driven by a **1.5%** increase in volume and a **5.0%** increase in adjusted gross profit per order[14](index=14&type=chunk) [Global Forwarding](index=6&type=section&id=Global%20Forwarding%20Results) Global Forwarding Q2 total revenues increased 18.1% to $921.2 million, with adjusted gross profits up 2.7% to $184.1 million, driving a 38.2% increase in income from operations to $41.0 million | Global Forwarding - Q2 2024 | Amount | YoY Change | | :--- | :--- | :--- | | Total Revenues | $921.2 million | +18.1% | | Adjusted Gross Profits | $184.1 million | +2.7% | | Income from Operations | $41.0 million | +38.2% | | Adjusted Operating Margin | 22.3% | +580 bps | - Ocean adjusted gross profits increased **8.6%**, driven by a **4.0%** increase in shipments and a **4.5%** increase in adjusted gross profit per shipment[16](index=16&type=chunk) - Air adjusted gross profits decreased **8.9%**, driven by an **18.0%** decrease in adjusted gross profit per metric ton, despite an **11.0%** increase in metric tons shipped[16](index=16&type=chunk) [All Other and Corporate](index=7&type=section&id=All%20Other%20and%20Corporate%20Results) The 'All Other' group showed mixed Q2 performance, with Robinson Fresh adjusted gross profits up 5.2% to $39.9 million, while Other Surface Transportation declined 20.3% to $15.1 million | All Other - Q2 2024 Adjusted Gross Profits | Amount | YoY Change | | :--- | :--- | :--- | | Robinson Fresh | $39.9 million | +5.2% | | Managed Services | $28.8 million | -0.7% | | Other Surface Transportation | $15.1 million | -20.3% | [Other Income Statement Items](index=7&type=section&id=Other%20Income%20Statement%20Items) Q2 net interest and other expense was $21.5 million, with the effective tax rate increasing to 19.4% from 14.9% in the prior year, and a full-year projection of 17% to 19% - Interest and other income/expense, net was **$21.5 million** of expense in Q2 2024[19](index=19&type=chunk) - The Q2 effective tax rate was **19.4%**, up from **14.9%** in Q2 2023, with the full-year 2024 effective tax rate expected to be between **17%** and **19%**[19](index=19&type=chunk) [Cash Flow and Capital Distribution](index=8&type=section&id=Cash%20Flow%20Generation%20and%20Capital%20Distribution) Q2 cash from operations was $166.4 million, a decrease from the prior year, with $76.4 million returned to shareholders through dividends and repurchases - Cash from operations was **$166.4 million** in Q2 2024, down from **$224.8 million** in Q2 2023[21](index=21&type=chunk) - Returned **$76.4 million** to shareholders in Q2, consisting of **$72.7 million** in dividends and **$3.7 million** in stock repurchases[21](index=21&type=chunk) - 2024 capital expenditures are expected to be toward the lower end of the **$85 million to $95 million** range[21](index=21&type=chunk) [Financial Statements and Reconciliations](index=10&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents detailed financial data, including adjusted gross profit by service line, GAAP to non-GAAP reconciliations, and condensed consolidated statements of income, balance sheets, and cash flows [Adjusted Gross Profit by Service Line](index=10&type=section&id=Adjusted%20Gross%20Profit%20by%20Service%20Line) Q2 2024 enterprise adjusted gross profits increased 3.2% in total transportation, with growth in Truckload, LTL, Ocean, and Customs, offset by declines in Air and Other logistics services | Service Line (Q2 2024) | Adjusted Gross Profits | YoY Change | | :--- | :--- | :--- | | Truckload | $274.2 million | +5.0% | | LTL | $145.8 million | +6.3% | | Ocean | $116.7 million | +8.5% | | Air | $30.9 million | -8.4% | | Customs | $26.7 million | +6.1% | | Other logistics services | $57.3 million | -13.9% | | **Total Transportation** | **$651.5 million** | **+3.2%** | [GAAP to Non-GAAP Reconciliation](index=11&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) This section reconciles Q2 2024 GAAP metrics to non-GAAP measures, showing adjustments from GAAP gross profit of $676.5 million to adjusted gross profit of $687.4 million, and diluted EPS from $1.05 to $1.15 | Q2 2024 Reconciliation | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | Gross Profit | $676.5 million | +$10.9 million | $687.4 million | | Income from Operations | $178.1 million | +$15.2 million | $193.3 million | | Diluted EPS | $1.05 | +$0.10 | $1.15 | [Condensed Consolidated Statements of Income](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The Q2 2024 income statement shows a 1.4% increase in total revenues to $4.48 billion, with income from operations rising 34.3% to $178.1 million due to effective cost management | Income Statement (Q2 2024) | Amount (in thousands) | | :--- | :--- | | Total revenues | $4,483,348 | | Total costs and expenses | $4,305,258 | | Income from operations | $178,090 | | Net income | $126,251 | | Diluted EPS | $1.05 | [Business Segment Information](index=15&type=section&id=Business%20Segment%20Information) This table details Q2 and YTD segment financial performance, highlighting NAST's $141.1 million operating income and Global Forwarding's $41.0 million, alongside a 10.0% decrease in average employee headcount | Q2 2024 Segment Data | NAST | Global Forwarding | All Other & Corp. | Consolidated | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $2,989.9 million | $921.2 million | $572.2 million | $4,483.3 million | | Adjusted Gross Profits | $419.7 million | $184.1 million | $83.7 million | $687.4 million | | Income (loss) from Ops | $141.1 million | $41.0 million | ($4.0 million) | $178.1 million | | Avg. Employee Headcount | 5,868 | 4,652 | 3,954 | 14,474 | [Condensed Consolidated Balance Sheets](index=17&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, the balance sheet shows total assets of $5.51 billion, total liabilities of $4.00 billion, and total stockholders' investment of $1.51 billion | Balance Sheet Item | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $3,179.2 million | $2,880.7 million | | Total Assets | $5,512.3 million | $5,225.3 million | | Total Current Liabilities | $2,244.2 million | $2,052.0 million | | Total Liabilities | $4,001.9 million | $3,806.6 million | | Total Stockholders' Investment | $1,510.4 million | $1,418.7 million | [Condensed Consolidated Statements of Cash Flows](index=18&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, net cash provided by operating activities was $133.1 million, a significant decrease from the prior year, resulting in a net cash decrease of $32.4 million | Cash Flow (Six Months Ended June 30) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $133.1 million | $479.4 million | | Net cash used for investing activities | ($41.8 million) | ($51.3 million) | | Net cash used for financing activities | ($120.1 million) | ($432.1 million) | | Net change in cash and cash equivalents | ($32.4 million) | ($7.3 million) |

Core Viewpoint - C.H. Robinson (CHRW) is expected to report second-quarter 2024 results on July 31, with a history of earnings surprises and a positive outlook for the upcoming quarter [1][10]. Financial Estimates - The Zacks Consensus Estimate for CHRW's earnings has been revised upward by 5.75% to 92 cents per share, while revenue estimates are set at $4.48 billion, indicating a year-over-year growth of 1.4% [2]. - Revenue from the transportation segment is estimated at $4.10 billion, reflecting a 0.5% increase compared to the second-quarter 2023 actuals, with sourcing segment revenues pegged at $323 million [4]. - For North American Surface Transportation, second-quarter revenues are estimated at $3.1 billion, a 0.2% increase from the previous year, while Global Forwarding revenues are expected to be $787 million, indicating a 0.9% increase [8]. Recent Performance - In the first quarter of 2024, C.H. Robinson reported earnings of 86 cents per share, exceeding the Zacks Consensus Estimate of 60 cents, although it represented a decline year-over-year. Total revenues of $4.412 billion also surpassed estimates but declined 4.3% year-over-year due to lower truckload service pricing, partially offset by higher pricing and increased volumes in ocean services [5]. Operational Insights - Declining operating expenses, primarily due to reduced costs in purchased transportation and related services, are expected to support CHRW's bottom line in the upcoming quarter [9]. - However, soft market conditions are anticipated to negatively impact the company's performance in the to-be-reported quarter [9]. Earnings Prediction - The model predicts an earnings beat for C.H. Robinson, supported by a positive Earnings ESP of +5.29% and a Zacks Rank of 2 (Buy) [10].

Core Viewpoint - The stock movement may not solely depend on earnings results, as other factors can influence investor sentiment and stock performance [1][3]. Earnings Expectations - C.H. Robinson Worldwide (CHRW) is expected to report revenues of $4.48 billion, reflecting a year-over-year increase of 1.4% [4]. - The consensus EPS estimate for the upcoming quarter is $0.92 per share, indicating a year-over-year change of +2.2% [13]. - Over the last four quarters, C.H. Robinson has beaten consensus EPS estimates two times [9]. Earnings Surprise Prediction - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with a positive Earnings ESP indicating a higher likelihood of an earnings beat [5][15]. - C.H. Robinson has a positive Earnings ESP of +5.29%, suggesting analysts have recently become more optimistic about the company's earnings prospects [16]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) have a nearly 70% chance of delivering a positive surprise [6]. Analyst Revisions and Market Sentiment - The direction of estimate revisions by analysts can provide insights into business conditions leading up to earnings releases [14]. - C.H. Robinson currently holds a Zacks Rank of 2, indicating a favorable outlook [7]. - The Most Accurate Estimate for C.H. Robinson is higher than the Zacks Consensus Estimate, reinforcing the expectation of an earnings beat [16]. Recent Performance - In the last reported quarter, C.H. Robinson was expected to post earnings of $0.60 per share but delivered $0.86, resulting in a surprise of +43.33% [18]. Conclusion - C.H. Robinson is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors before making investment decisions [20].