C.H. Robinson Worldwide (NasdaqGS:CHRW) Q3 2020 Earnings Preview


C.H. Robinson Worldwide, Inc. (NasdaqGS:CHRW) is scheduled to report Q3 earnings results after markets close for trading on October 27, 2020.

The company is expected to report earnings of $0.98/share on revenue of $3.942 billion. The consensus earnings per share (EPS) of $0.98/share is based on a poll of 19 analysts and represents a decline in eps of −8.9% over the same quarter last year, when the company reported earnings of $1.07/share.

The revenue forecast of $3.942 billion based on a poll of 12 analysts implies a year-over-year (YoY) growth in revenue of 2.2%. Last year the company reported $3.856 billion in revenue for the quarter.

Expected to report EPS contraction of −8.9% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $3,942.14 $3,856.13 2.2%
EPS $0.98 $1.07 −8.9%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, missed 3 quarters, and met expectations 1 quarter.

What are your expectations from C.H. Robinson Worldwide, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.61 $1.06 74.3% Beat
Q1, 2020 $0.69 $0.57 −17.4% Missed
Q4, 2019 $0.96 $0.70 −26.9% Missed
Q3, 2019 $1.14 $1.07 −6.3% Missed
Q2, 2019 $1.22 $1.22 0% Met
Q1, 2019 $1.14 $1.16 1.8% Beat
Q4, 2018 $1.21 $1.34 10.4% Beat
Q3, 2018 $1.17 $1.25 6.5% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 8.6%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 28, 2020 $87.70 $95.28 8.6% Increase
April 28, 2020 $74.04 $71.26 −3.8% Decline
January 28, 2020 $78.47 $73.41 −6.4% Decline
October 29, 2019 $90.33 $77.08 −14.7% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.81, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.81 implies a 0.2% chance of earnings manipulation.

Fundamentals And Technical Analysis

C.H. Robinson Worldwide, Inc. is currently trading at $100.51/share, up 0.5% for the day. The company is trading at approximately 94.2% of its 52-week high of $106.75/share. The company’s stock price is up 5.5% since the last earnings report and down −4.1% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 45.61 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NasdaqGS:CHRW Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 28.95 and a forward P/E multiple of 27.34.

C.H. Robinson Worldwide, Inc.’s current share price also implies a price-to-book (P/B) multiple of 7.95. The following table summarizes some other key fundamental ratios:

Data as of October 21, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $100.51
P/E Ratio 29.0x
P/E Ratio (Fwd) 27.3x
PEG Ratio −0.9
Total Debt / Total Capital 9.6%
Levered Free Cash Flow $853.4 million
EV / EBITDA 20.3x


C.H. Robinson Worldwide, Inc. is a large-cap stock with a market capitalization of $13.551 billion and a total enterprise value of $14.627 billion. The company operates in the Industrials sector and the Air Freight & Logistics industry.

C.H. Robinson Worldwide, Inc., a third party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide. The company operates through North American Surface Transportation and Global Forwarding segments. It offers transportation and logistics services, such as truckload; less than truckload transportation, which include the shipment of single or multiple pallets of freight; intermodal transportation that include the shipment service of freight in trailers or containers by a combination of truck and rail; and non-vessel ocean common carrier or freight forwarding services, as well as organizes air shipments and offers door-to-door services. The company also provides custom broker services; and other logistics services, including fee-based managed, warehousing, small parcel, and other services. It has contractual relationships with approximately 78,000 transportation companies, including motor carriers, railroads, and air and ocean carriers. In addition, the company is involved in buying, selling, and marketing fresh produce, including fresh fruits, vegetables, and other perishable items under the Robinson Fresh name. Further, it provides transportation management services or managed TMS; and other surface transportation services across Europe. The company offers its fresh produce to grocery retailers, restaurants, produce wholesalers, and foodservice distributors through a network of independent produce growers and suppliers. C.H. Robinson Worldwide, Inc. was founded in 1905 and is headquartered in Eden Prairie, Minnesota.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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