We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is C.H. Robinson (CHRW) Up 14.5% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for C.H. Robinson Worldwide (CHRW - Free Report) . Shares have added about 14.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is C.H. Robinson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Earnings Miss at C.H. Robinson in Q4
C.H. Robinson Worldwide’s (CHRW - Free Report) fourth-quarter 2021 earnings of $1.74 per share fell short of the Zacks Consensus Estimate of $1.85. However, the bottom line surged 61.1% year over year.
Total revenues of $6,501.8 million outperformed the Zacks Consensus Estimate of $6,190.8 million. The top line jumped 42.9% year over year owing to higher pricing and volumes across most of the company’s service lines.
Total operating expenses increased 31.2% year over year to $568.9 million due to higher personnel, and selling, general and administrative expenses. Adjusted gross profit climbed 33.7% year over year to $856.3 million, primarily owing to higher volumes across most of the company’s services, as well as increased adjusted gross profit per transaction.
C.H. Robinson returned $222.8 million to its shareholders in the fourth quarter through a combination of cash dividends ($68.4 million) and share repurchases ($154.4 million). Capital expenditures totaled $18.4 million in the quarter under review. The company expects capital expenditures in the band of $90 million-$100 million for 2022. Majority of the amount is aimed at technology investments.
Segmental Results
At North American Surface Transportation (“NAST”), total revenues were $3.90 billion (up 26.1%) in the fourth quarter. Segmental revenues benefited from higher truckload and less-than-truckload ("LTL") pricing, as well as an increase in truckload shipments. Adjusted gross profit at the segment ascended 19.7%, driven by a 22.2% increase in truckload adjusted gross profit, which was helped by the rise in adjusted gross profit per load and an increase in shipments. NAST results include Robinson Fresh transportation, which was previously reported under a separate segment.
Total revenues at Global Forwarding were $2.14 billion, up more than 100% year over year. With increased freight demand and capacity constraints, higher pricing and volumes in ocean and air services units boosted results. Adjusted gross profit at the segment surged 71.9% year over year.
A historical presentation of the results on an enterprise basis is given below:
Transportation: The unit (comprising Truckload, Intermodal, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $832.40 million in the quarter under consideration, up 34.6% from the prior-year figure.
Adjusted gross profit at the Truckload segment climbed 22.3% year over year to $339.51 million. LTL adjusted gross profit increased 18.3% year over year to $139.46 million, with adjusted gross profit per order rising 23.5%. LTL volumes decreased 4%.
Adjusted gross profit at the Ocean transportation segment jumped 86.6% year over year to $209.80 million. The same at the air transportation segment climbed 84.1% to $65.78 million. Customs-adjusted gross profit augmented 5.7% to $25.34 million.
Other logistics services’ adjusted gross profit rose 2.7 % to $52.51 million.
Sourcing: Adjusted gross profit at the segment increased 8.9% to $23.94 million.
Liquidity
This company exited the fourth quarter with cash and cash equivalents of $257.41 million compared with $243.80 million at the end of December 2020. Long-term debt was $1.39 billion compared with $1.09 billion at the end of December 2020.
Sourcing: Net revenue at the segment increased 3.9% year over year to $30.41 million.
Liquidity
Sourcing: Net revenue at the segment increased 3.9% year over year to $30.41 million.
Liquidity
Below we give a historical presentation of results on an enterprise basis.
Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.
Below we give a historical presentation of results on an enterprise basis.
Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.
Below we give a historical presentation of results on an enterprise basis.
Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, C.H. Robinson has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, C.H. Robinson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is C.H. Robinson (CHRW) Up 14.5% Since Last Earnings Report?
It has been about a month since the last earnings report for C.H. Robinson Worldwide (CHRW - Free Report) . Shares have added about 14.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is C.H. Robinson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Earnings Miss at C.H. Robinson in Q4
C.H. Robinson Worldwide’s (CHRW - Free Report) fourth-quarter 2021 earnings of $1.74 per share fell short of the Zacks Consensus Estimate of $1.85. However, the bottom line surged 61.1% year over year.
Total revenues of $6,501.8 million outperformed the Zacks Consensus Estimate of $6,190.8 million. The top line jumped 42.9% year over year owing to higher pricing and volumes across most of the company’s service lines.
Total operating expenses increased 31.2% year over year to $568.9 million due to higher personnel, and selling, general and administrative expenses. Adjusted gross profit climbed 33.7% year over year to $856.3 million, primarily owing to higher volumes across most of the company’s services, as well as increased adjusted gross profit per transaction.
C.H. Robinson returned $222.8 million to its shareholders in the fourth quarter through a combination of cash dividends ($68.4 million) and share repurchases ($154.4 million). Capital expenditures totaled $18.4 million in the quarter under review. The company expects capital expenditures in the band of $90 million-$100 million for 2022. Majority of the amount is aimed at technology investments.
Segmental Results
At North American Surface Transportation (“NAST”), total revenues were $3.90 billion (up 26.1%) in the fourth quarter. Segmental revenues benefited from higher truckload and less-than-truckload ("LTL") pricing, as well as an increase in truckload shipments. Adjusted gross profit at the segment ascended 19.7%, driven by a 22.2% increase in truckload adjusted gross profit, which was helped by the rise in adjusted gross profit per load and an increase in shipments. NAST results include Robinson Fresh transportation, which was previously reported under a separate segment.
Total revenues at Global Forwarding were $2.14 billion, up more than 100% year over year. With increased freight demand and capacity constraints, higher pricing and volumes in ocean and air services units boosted results. Adjusted gross profit at the segment surged 71.9% year over year.
A historical presentation of the results on an enterprise basis is given below:
Transportation: The unit (comprising Truckload, Intermodal, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $832.40 million in the quarter under consideration, up 34.6% from the prior-year figure.
Adjusted gross profit at the Truckload segment climbed 22.3% year over year to $339.51 million. LTL adjusted gross profit increased 18.3% year over year to $139.46 million, with adjusted gross profit per order rising 23.5%. LTL volumes decreased 4%.
Adjusted gross profit at the Ocean transportation segment jumped 86.6% year over year to $209.80 million. The same at the air transportation segment climbed 84.1% to $65.78 million. Customs-adjusted gross profit augmented 5.7% to $25.34 million.
Other logistics services’ adjusted gross profit rose 2.7 % to $52.51 million.
Sourcing: Adjusted gross profit at the segment increased 8.9% to $23.94 million.
Liquidity
This company exited the fourth quarter with cash and cash equivalents of $257.41 million compared with $243.80 million at the end of December 2020. Long-term debt was $1.39 billion compared with $1.09 billion at the end of December 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, C.H. Robinson has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, C.H. Robinson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.