Is a Beat in Store for C.H. Robinson (CHRW) in Q2 Earnings?

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].