C.H. Robinson Worldwide, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of US$4.4b, some 3.1% above estimates, and statutory earnings per share (EPS) coming in at US$0.78, 27% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for C.H. Robinson Worldwide

Taking into account the latest results, the most recent consensus for C.H. Robinson Worldwide from 19 analysts is for revenues of US$17.8b in 2024. If met, it would imply an okay 2.5% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 38% to US$3.61. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$17.6b and earnings per share (EPS) of US$3.27 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the substantial gain in earnings per share expectations following these results.

There's been no major changes to the consensus price target of US$80.14, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic C.H. Robinson Worldwide analyst has a price target of US$93.00 per share, while the most pessimistic values it at US$60.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that C.H. Robinson Worldwide's revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2024 being well below the historical 7.1% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than C.H. Robinson Worldwide.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards C.H. Robinson Worldwide following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for C.H. Robinson Worldwide going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for C.H. Robinson Worldwide that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.