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C.H. Robinson (CHRW) Up 2.9% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for C.H. Robinson Worldwide, Inc. (CHRW - Free Report) . Shares have added about 2.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Second Quarter Earnings
C.H. Robinson Worldwide Inc.'s second-quarter 2017 earnings per share of $0.78 fell short of the Zacks Consensus Estimate by $0.12. Moreover, earnings decreased 22% year over year due to higher costs and lacklustre performance of the truckload division. Total revenue rose 12.43% year over year to $3,710 million, surpassing the Zacks Consensus Estimate of $3,590 million. Notably, volume growth across all its transportation services drove the top line.
Total operating expenses increased 8.7% year over year to $391.97 million, resulting in an operating ratio (operating expenses as a percentage of net revenue) of 68.3% compared with 60.7% in the year-ago quarter.
From fourth-quarter 2016, the company has been reporting under three segments – North American Surface Transportation (NAST), Global Forwarding and Robinson Fresh. While total revenue at NAST was $2.4 billion in the reported quarter (up 10.3% year over year), revenues at Global Forwarding totaled $528.8 million (up 48.2%) and at Robinson Fresh was $657 million (down 0.5%).
A historical presentation of results on an enterprise basis is given below:
Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) posted net revenue of $538.6 million in the reported quarter, down 3.2% from the year-ago quarter.
Truckload net revenue declined 14.3% year over year to $282.7 million. Meanwhile, net revenue at Less-than-Truckload increased 2.4% year over year to $102.2 million.
Net revenue at the Intermodal segment declined 7.9% year over year to $8.3 million as the presence of alternative lower cost trucks hurt Intermodal opportunities.
Net revenue at the Ocean transportation segment rose 22.3% year over year to $73.4 million. The same at the Air transportation division increased 28.3% year over year to $25.8 million. Customs net revenue advanced 40.6% to $16.3 million.
Net revenue at Other logistics services increased 17.2% year over year to $28.1 million on the back of growth in managed services.
Sourcing: Net revenue at the segment rose 6.8% year over year to approximately $35.15 million.
Liquidity
C.H. Robinson exited the reported quarter with cash and cash equivalents of $273.2 million compared with $247.7 million at the end of 2016. Long-term debt was $750 million at the end of the quarter compared with $500 million recorded at the end of 2016.
Liquidity
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?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been two revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 9% due to these changes.
At this time, C.H. Robinson's stock has a subpar Growth Score of D, though it is lagging a bit on the momentum front with an F. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #5 (Strong Sell). We are looking for a below average return from the stock in the next few months.
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C.H. Robinson (CHRW) Up 2.9% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for C.H. Robinson Worldwide, Inc. (CHRW - Free Report) . Shares have added about 2.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Second Quarter Earnings
C.H. Robinson Worldwide Inc.'s second-quarter 2017 earnings per share of $0.78 fell short of the Zacks Consensus Estimate by $0.12. Moreover, earnings decreased 22% year over year due to higher costs and lacklustre performance of the truckload division. Total revenue rose 12.43% year over year to $3,710 million, surpassing the Zacks Consensus Estimate of $3,590 million. Notably, volume growth across all its transportation services drove the top line.
Total operating expenses increased 8.7% year over year to $391.97 million, resulting in an operating ratio (operating expenses as a percentage of net revenue) of 68.3% compared with 60.7% in the year-ago quarter.
From fourth-quarter 2016, the company has been reporting under three segments – North American Surface Transportation (NAST), Global Forwarding and Robinson Fresh. While total revenue at NAST was $2.4 billion in the reported quarter (up 10.3% year over year), revenues at Global Forwarding totaled $528.8 million (up 48.2%) and at Robinson Fresh was $657 million (down 0.5%).
A historical presentation of results on an enterprise basis is given below:
Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) posted net revenue of $538.6 million in the reported quarter, down 3.2% from the year-ago quarter.
Truckload net revenue declined 14.3% year over year to $282.7 million. Meanwhile, net revenue at Less-than-Truckload increased 2.4% year over year to $102.2 million.
Net revenue at the Intermodal segment declined 7.9% year over year to $8.3 million as the presence of alternative lower cost trucks hurt Intermodal opportunities.
Net revenue at the Ocean transportation segment rose 22.3% year over year to $73.4 million. The same at the Air transportation division increased 28.3% year over year to $25.8 million. Customs net revenue advanced 40.6% to $16.3 million.
Net revenue at Other logistics services increased 17.2% year over year to $28.1 million on the back of growth in managed services.
Sourcing: Net revenue at the segment rose 6.8% year over year to approximately $35.15 million.
Liquidity
C.H. Robinson exited the reported quarter with cash and cash equivalents of $273.2 million compared with $247.7 million at the end of 2016. Long-term debt was $750 million at the end of the quarter compared with $500 million recorded at the end of 2016.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been two revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 9% due to these changes.
C.H. Robinson Worldwide, Inc. Price and Consensus
C.H. Robinson Worldwide, Inc. Price and Consensus | C.H. Robinson Worldwide, Inc. Quote
VGM Scores
At this time, C.H. Robinson's stock has a subpar Growth Score of D, though it is lagging a bit on the momentum front with an F. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #5 (Strong Sell). We are looking for a below average return from the stock in the next few months.