C.H. Robinson Worldwide’s (CHRW - Free Report) first-quarter 2021 earnings of $1.28 per share surpassed the Zacks Consensus Estimate of 97 cents. Moreover, the bottom line surged more than 100% year over year.
Total revenues of $4,803.9 million not only outperformed the Zacks Consensus Estimate of $4365.4 million but also increased 26.3% year over year owing to higher pricing and increased volumes across most of the company’s service lines, thanks to improvement in freight environment.
Total operating expenses increased 4.5% year over year to $479.1 million due to higher personnel expenses. Adjusted gross profit climbed 23.7% year over year to $702.38 million, primarily owing to higher pricing at the truckload, ocean and air service lines, increased volumes in ocean, less than truckload ("LTL") and air service lines, as well as contributions from the Prime Distribution Services acquisition.
The company returned $220.9 million to its shareholders in the first quarter through a combination of cash dividends ($70 million) and share repurchases ($150.9 million). Capital expenditure totaled $13.5 million in the quarter under review. The company continues to expect capital expenditure in the band of $55 million-$65 million for 2021. Majority of the amount will be used on technology spends.
Segmental Results
At North American Surface Transportation (“NAST”), total revenues were $3.21 billion (up 13.7%) in the first quarter. Segmental revenues increased due to higher truckload pricing and increase in LTL shipments. Adjusted gross profit at the segment ascended 13% with a three-percentage-point benefit from the Prime acquisition in March 2020. NAST results include Robinson Fresh transportation, which was previously reported under a separate segment.
Total revenues at Global Forwarding were $1.16 billion, up more than 100% year over year. Higher pricing and volumes at ocean and air service lines, owing to increased freight demand, boosted results. Adjusted gross profit at the segment surged 67% 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 adjusted gross profit of $678.94 million in the quarter under consideration, up 25.3% from the prior-year figure.
Adjusted gross profit at the Truckload segment climbed 13.2% year over year to $300.02 million. Volumes declined 6.5% year over year. LTL adjusted gross profit increased 6.7% year over year to $121.55 million with volumes increasing 15% in the quarter.
Adjusted gross profit at the Ocean transportation segment jumped 93.9% year over year to $135.51 million. The same at the air transportation segment surged 62% to $45.89 million. Meanwhile, customs-adjusted gross profit augmented 14.3% to $24.22 million.
Other logistics services’ adjusted gross profit rose 18.3% to $51.74 million.
Sourcing: Adjusted gross profit at the segment declined 9.7% to $23.44 million.
Liquidity
This Zacks Rank #3 (Hold) company exited the first quarter with cash and cash equivalents of $217.61 million compared with $243.80 million at the end of December 2020. Long-term debt was $1.09 billion, flat compared with December 2020.
Sectorial Snapshot
Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Transportation sector.
Canadian National Railway Company (CNI - Free Report) , carrying a Zacks Rank #3, reported first-quarter 2021 earnings (excluding 11 cents from non-recurring items) of 97 cents per share (C$1.23), missing the Zacks Consensus Estimate of 99 cents. Quarterly revenues of $2,791.6 million (C$3,535 million) lagged the Zacks Consensus Estimate of $2,813.1 million.
Landstar System (LSTR - Free Report) , sporting a Zacks Rank #1 (Strong Buy), reported first-quarter 2021 earnings of $2.01 per share, surpassing the Zacks Consensus estimate of $1.61. Additionally, revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million. You can see the complete list of today's Zacks #1 Rank stocks here.
Southwest Airlines (LUV - Free Report) , carrying a Zacks Rank of 3, incurred a loss of $1.72 per share (excluding $1.91 from non-recurring items) in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.82. Meanwhile, operating revenues of $2,052 million surpassed the Zacks Consensus Estimate of $2,031.7 million.
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C.H. Robinson Worldwide’s (CHRW - Free Report) first-quarter 2021 earnings of $1.28 per share surpassed the Zacks Consensus Estimate of 97 cents. Moreover, the bottom line surged more than 100% year over year.
Total revenues of $4,803.9 million not only outperformed the Zacks Consensus Estimate of $4365.4 million but also increased 26.3% year over year owing to higher pricing and increased volumes across most of the company’s service lines, thanks to improvement in freight environment.
Total operating expenses increased 4.5% year over year to $479.1 million due to higher personnel expenses. Adjusted gross profit climbed 23.7% year over year to $702.38 million, primarily owing to higher pricing at the truckload, ocean and air service lines, increased volumes in ocean, less than truckload ("LTL") and air service lines, as well as contributions from the Prime Distribution Services acquisition.
The company returned $220.9 million to its shareholders in the first quarter through a combination of cash dividends ($70 million) and share repurchases ($150.9 million). Capital expenditure totaled $13.5 million in the quarter under review. The company continues to expect capital expenditure in the band of $55 million-$65 million for 2021. Majority of the amount will be used on technology spends.
Segmental Results
At North American Surface Transportation (“NAST”), total revenues were $3.21 billion (up 13.7%) in the first quarter. Segmental revenues increased due to higher truckload pricing and increase in LTL shipments. Adjusted gross profit at the segment ascended 13% with a three-percentage-point benefit from the Prime acquisition in March 2020. NAST results include Robinson Fresh transportation, which was previously reported under a separate segment.
Total revenues at Global Forwarding were $1.16 billion, up more than 100% year over year. Higher pricing and volumes at ocean and air service lines, owing to increased freight demand, boosted results. Adjusted gross profit at the segment surged 67% 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 adjusted gross profit of $678.94 million in the quarter under consideration, up 25.3% from the prior-year figure.
Adjusted gross profit at the Truckload segment climbed 13.2% year over year to $300.02 million. Volumes declined 6.5% year over year. LTL adjusted gross profit increased 6.7% year over year to $121.55 million with volumes increasing 15% in the quarter.
Adjusted gross profit at the Ocean transportation segment jumped 93.9% year over year to $135.51 million. The same at the air transportation segment surged 62% to $45.89 million. Meanwhile, customs-adjusted gross profit augmented 14.3% to $24.22 million.
Other logistics services’ adjusted gross profit rose 18.3% to $51.74 million.
Sourcing: Adjusted gross profit at the segment declined 9.7% to $23.44 million.
Liquidity
This Zacks Rank #3 (Hold) company exited the first quarter with cash and cash equivalents of $217.61 million compared with $243.80 million at the end of December 2020. Long-term debt was $1.09 billion, flat compared with December 2020.
Sectorial Snapshot
Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Transportation sector.
Canadian National Railway Company (CNI - Free Report) , carrying a Zacks Rank #3, reported first-quarter 2021 earnings (excluding 11 cents from non-recurring items) of 97 cents per share (C$1.23), missing the Zacks Consensus Estimate of 99 cents. Quarterly revenues of $2,791.6 million (C$3,535 million) lagged the Zacks Consensus Estimate of $2,813.1 million.
Landstar System (LSTR - Free Report) , sporting a Zacks Rank #1 (Strong Buy), reported first-quarter 2021 earnings of $2.01 per share, surpassing the Zacks Consensus estimate of $1.61. Additionally, revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million. You can see the complete list of today's Zacks #1 Rank stocks here.
Southwest Airlines (LUV - Free Report) , carrying a Zacks Rank of 3, incurred a loss of $1.72 per share (excluding $1.91 from non-recurring items) in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.82. Meanwhile, operating revenues of $2,052 million surpassed the Zacks Consensus Estimate of $2,031.7 million.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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