C.H. Robinson Worldwide Inc.'s (CHRW - Free Report) fourth-quarter 2016 earnings per share of 86 cents beat the Zacks Consensus Estimate of 84 cents. However, earnings declined 2.2% year over year due to higher costs.
Total revenue increased 6.4% year over year to $3,415 million and beat the Zacks Consensus Estimate of $3,335 million. Volume growth drove the top line. Total operating expenses climbed 3.3% year over year to $368 million, resulting in an operating ratio (operating expenses as a percentage of net revenue) of 65.5% compared with 62.4% a year ago.
From this quarter, the company has started reporting through three segments – North American Surface Transportation (“NAST”), Global Forwarding, and Robinson Fresh. While total revenue at NAST was $2.3 billion, revenues at the Global Forwarding division were $476 million and total revenue at Robinson Fresh was $529.4 million.
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 $535.6 million in the fourth quarter of 2016, down 1.5% from the year-ago quarter. Lower truckload margins hurt results.
Truckload net revenue declined 12.4% year over year to $296.7 million. Net revenue at Less-than-Truckload increased 5.2% year over year to 94.3 million.
Net revenue at the Intermodal segment declined 14.9% year over year to $7.5 million. The presence of alternative lower cost truck market hurt Intermodal opportunities.
Net revenue at the Ocean transportation segment increased 23.1% year over year to $69 million. The same at the Air transportation division increased 27.6% year over year to $23.7 million. Customs net revenue improved 48.5% to $15.9 million.
Net revenue at Other logistics services jumped 33.9% year over year to $28.4 million on the back of growth in managed services.
Sourcing: Net revenue at the segment fell 3.5% year over year to $25.9 million.
Liquidity
C.H. Robinson, which carries a Zacks Rank #3 (Hold), exited 2016 with cash and cash equivalents of approximately $247.7 million compared with $168.3 million at the end of 2015. Long-term debt was $500 million at the end of 2016, unchanged from the figure recorded at the end of 2015. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Other Important Releases Coming Up
Investors in the broader transportation space keenly await the fourth-quarter earnings reports of Spirit Airlines (SAVE - Free Report) , Alaska Air Group (ALK - Free Report) and Expeditors (EXPD - Free Report) , slated for release on Feb 7, Feb 8 and Feb 21, respectively.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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 >>
C.H. Robinson Worldwide Inc.'s (CHRW - Free Report) fourth-quarter 2016 earnings per share of 86 cents beat the Zacks Consensus Estimate of 84 cents. However, earnings declined 2.2% year over year due to higher costs.
Total revenue increased 6.4% year over year to $3,415 million and beat the Zacks Consensus Estimate of $3,335 million. Volume growth drove the top line. Total operating expenses climbed 3.3% year over year to $368 million, resulting in an operating ratio (operating expenses as a percentage of net revenue) of 65.5% compared with 62.4% a year ago.
From this quarter, the company has started reporting through three segments – North American Surface Transportation (“NAST”), Global Forwarding, and Robinson Fresh. While total revenue at NAST was $2.3 billion, revenues at the Global Forwarding division were $476 million and total revenue at Robinson Fresh was $529.4 million.
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 $535.6 million in the fourth quarter of 2016, down 1.5% from the year-ago quarter. Lower truckload margins hurt results.
Truckload net revenue declined 12.4% year over year to $296.7 million. Net revenue at Less-than-Truckload increased 5.2% year over year to 94.3 million.
Net revenue at the Intermodal segment declined 14.9% year over year to $7.5 million. The presence of alternative lower cost truck market hurt Intermodal opportunities.
Net revenue at the Ocean transportation segment increased 23.1% year over year to $69 million. The same at the Air transportation division increased 27.6% year over year to $23.7 million. Customs net revenue improved 48.5% to $15.9 million.
Net revenue at Other logistics services jumped 33.9% year over year to $28.4 million on the back of growth in managed services.
Sourcing: Net revenue at the segment fell 3.5% year over year to $25.9 million.
Liquidity
C.H. Robinson, which carries a Zacks Rank #3 (Hold), exited 2016 with cash and cash equivalents of approximately $247.7 million compared with $168.3 million at the end of 2015. Long-term debt was $500 million at the end of 2016, unchanged from the figure recorded at the end of 2015. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Other Important Releases Coming Up
Investors in the broader transportation space keenly await the fourth-quarter earnings reports of Spirit Airlines (SAVE - Free Report) , Alaska Air Group (ALK - Free Report) and Expeditors (EXPD - Free Report) , slated for release on Feb 7, Feb 8 and Feb 21, respectively.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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 >>
Get the latest research report on CHRW - FREE
Get the latest research report on EXPD - FREE
Get the latest research report on ALK - FREE
Get the latest research report on SAVE - FREE