Does the CH Robinson Whisper Number Show Investor Confidence?

CH Robinson Worldwide (NASDAQ:CHRW) is expected to report earnings on Tuesday. The whisper number is 64 cents, 3 cents ahead of the analysts’ estimate and showing confidence. CH Robinson has a 66 percent positive surprise history (having topped the whisper in 20 of the 30 earnings reports for which we have data).

Earnings history:

  • Beat whisper: 20 qtrs
  • Met whisper: 0 qtrs
  • Missed whisper: 10 qtrs

Our primary focus is on post-earnings price movement. Knowing how likely a stock’s price will move following an earnings report can help you determine the best action to take (long or short). In other words, we look at what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post-earnings price movement within a one and 30 trading day timeframe:

The strongest price movement of +3.7 percent comes within 10 trading days when the company reports earnings that beat the whisper number, and -3.9 percent within five trading days when the company reports earnings that miss the whisper number. The overall average price move is “as expected” (beat the whisper number and see strength, miss and see weakness) when the company reports earnings.