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C.H. Robinson (CHRW) Q2 Earnings in Line, Revenues Miss
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C.H. Robinson Worldwide Inc. (CHRW - Free Report) posted second-quarter 2016 earnings per share of $1, in line with the Zacks Consensus Estimate. Earnings improved 6.4% year over year.
On the other hand, total revenue decreased 6.9% year over year to $3,300 million and also fell short of the Zacks Consensus Estimate of $3,445 million. Total operating expenses climbed 1.6% year over year to $360.5 million, resulting in an operating ratio (operating expenses as a percentage of net revenue) of 60.7%, as against 60.8% a year ago.
The company’s stock price declined almost 5.7% in after hours trading most likely due to the revenue decline across key sectors as investors seemed disappointed due to the top line miss.
Transportation: The segment (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $556.5 million in the second quarter of 2016, up 1.5% from the year-ago quarter.
Truckload net revenue declined 1.4% year over year to $329.7 million. Meanwhile, net revenue at Less-than-Truckload increased 9% year over year to $99.8 million.
Net revenue at the Intermodal segment plunged 21.8% year over year to $9 million, hurt by the conversion to Truckload from Intermodal.
Net revenue at the Ocean transportation segment increased 1.7% year over year to $60.1 million. The same at the Air transportation division increased 2.7% year over year to $20.1 million. Meanwhile, Customs net revenue improved 5.8% to $11.6 million.
Net revenue at Other logistics services jumped 24% year over year to $26.2 million on the back of growth in managed services.
Sourcing: Net revenue at the segment increased 5.7% year over year to $37.7 million.
C.H. Robinson exited the second quarter of 2016 with cash and cash equivalents of approximately $207.1 million compared with $168.3 million at the end of 2015. Long-term debt was $500 million at the end of the quarter under review, unchanged from the figure recorded at the end of 2015.
Zacks Rank & Stocks to Consider
C.H. Robinson has a Zacks Rank #3 (Hold). Better-ranked stocks in this sector include Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.(OMAB - Free Report) and Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC - Free Report) with a Zacks Rank #1 (Strong Buy) and Matson, Inc. (MATX - Free Report) with a Zacks Rank #2 (Buy).
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C.H. Robinson (CHRW) Q2 Earnings in Line, Revenues Miss
C.H. Robinson Worldwide Inc. (CHRW - Free Report) posted second-quarter 2016 earnings per share of $1, in line with the Zacks Consensus Estimate. Earnings improved 6.4% year over year.
On the other hand, total revenue decreased 6.9% year over year to $3,300 million and also fell short of the Zacks Consensus Estimate of $3,445 million. Total operating expenses climbed 1.6% year over year to $360.5 million, resulting in an operating ratio (operating expenses as a percentage of net revenue) of 60.7%, as against 60.8% a year ago.
The company’s stock price declined almost 5.7% in after hours trading most likely due to the revenue decline across key sectors as investors seemed disappointed due to the top line miss.
Segment Details
Transportation: The segment (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $556.5 million in the second quarter of 2016, up 1.5% from the year-ago quarter.
Truckload net revenue declined 1.4% year over year to $329.7 million. Meanwhile, net revenue at Less-than-Truckload increased 9% year over year to $99.8 million.
Net revenue at the Intermodal segment plunged 21.8% year over year to $9 million, hurt by the conversion to Truckload from Intermodal.
Net revenue at the Ocean transportation segment increased 1.7% year over year to $60.1 million. The same at the Air transportation division increased 2.7% year over year to $20.1 million. Meanwhile, Customs net revenue improved 5.8% to $11.6 million.
Net revenue at Other logistics services jumped 24% year over year to $26.2 million on the back of growth in managed services.
Sourcing: Net revenue at the segment increased 5.7% year over year to $37.7 million.
CH ROBINSON WWD Price, Consensus and EPS Surprise
CH ROBINSON WWD Price, Consensus and EPS Surprise | CH ROBINSON WWD Quote
Liquidity
C.H. Robinson exited the second quarter of 2016 with cash and cash equivalents of approximately $207.1 million compared with $168.3 million at the end of 2015. Long-term debt was $500 million at the end of the quarter under review, unchanged from the figure recorded at the end of 2015.
Zacks Rank & Stocks to Consider
C.H. Robinson has a Zacks Rank #3 (Hold). Better-ranked stocks in this sector include Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.(OMAB - Free Report) and Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC - Free Report) with a Zacks Rank #1 (Strong Buy) and Matson, Inc. (MATX - Free Report) with a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>