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C.H. Robinson (CHRW) Q2 Earnings Top Estimates, Decline Y/Y
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C.H. Robinson Worldwide’s (CHRW - Free Report) second-quarter 2020 earnings of $1.06 per share surpassed the Zacks Consensus Estimate of 54 cents. However, the bottom line declined 13.1% year over year.
Although total revenues of $3,627.8 million outperformed the Zacks Consensus Estimate of $3,394.4 million, it decreased 7.2% year over year. This downside was due to lower pricing in truckload and less than truckload ("LTL") services.
Total operating expenses fell 9% year over year to $425.67 million, primarily due to short-term cost reductions of $40 million. However, operating ratio (operating expenses as a percentage of net revenues) deteriorated to 69.3% from 67.3% in the year-ago quarter. With respect to this metric, lower the value, the better.
The company returned $68.4 million to its shareholders through a combination of cash dividends ($67.2 million) and share repurchases ($1.2 million). Capital expenditures totaled $10.3 million in the quarter under review. Full-year capital expenses are expected in the low end of $60-$70 million, with the maximum reserved for technology spends.
C.H. Robinson Worldwide, Inc. Price, Consensus and EPS Surprise
At North American Surface Transportation (“NAST”), total revenues were 2,475.29 million (down 13.8%) in the second quarter. Segmental revenues declined due to low pricing. Moreover, net revenues in the segment dropped 22% despite the Prime Distribution Services acquisition contributing 3 percentage points to segmental results. NAST results include Robinson Fresh transportation, which was previously reported under a separate segment.
Total revenues at Global Forwarding summed $707.82 million, up 91.5% year over year. Higher pricing in air, increased charter flights and larger shipment sizes boosted results. Net revenues at the segment climbed 14.8% 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 net revenues of $586.02 million in the quarter under consideration, down 12% from the prior-year figure.
Truckload net revenues declined 25% year over year to $278.37 million, with volumes decreasing 4.5% year over year. LTL net revenues also dropped 13% year over year to $106.96 million with volumes slipping 2% in the quarter.
At the Intermodal segment, net revenues increased 23.3% year over year to $7.77 million. Intermodal volumes were flat year over year. Net revenues at the Ocean transportation segment declined 7.7% year over year to $78.85 million. The same at the air transportation segment surged approximately 100% to $52.41 million. Meanwhile, customs net revenues slid 16.5% to $19.46 million.
However, Other logistics services’ net revenues rose 40.4% to $42.21 million.
Sourcing: Net revenues at the segment slipped 4% to $28.43 million.
Liquidity
This Zacks Rank #3 (Hold) company exited the second quarter with cash and cash equivalents of $362.24 million compared with $447.86 million at the end of 2019. Liquidity at the end of the quarter was $1.6 billion. Long-term debt was 1,092.87 million, compared to $1,092.45 million at 2019-end.
Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ second-quarter earnings.
Canadian National’s (CNI - Free Report) second-quarter 2020 earnings (excluding 36 cents from non-recurring items) of 92 cents per share (C$0.77) were in line with the Zacks Consensus Estimate. However, the bottom line declined 28.7% year over year. Quarterly revenues of $2,315 million (C$3,209 million) missed the Zacks Consensus Estimate of $2,407.6 million and fell 21.8% year over year. This company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
J.B. Hunt Transport (JBHT - Free Report) , carrying a Zacks Rank #3, reported second-quarter earnings of $1.14 per share that surpassed the Zacks Consensus Estimate by 31 cents. Total revenues of $2,145.6 million beat the Zacks Consensus Estimate of $2,060.9 million.
Kansas City Southern’s second-quarter earnings (excluding a penny from non-recurring items) of $1.15 per share beat the Zacks Consensus Estimate of $1.12. This Zacks Rank #3 company’s total revenues of $547.9 million lagged the consensus mark of $550.2 million.
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C.H. Robinson (CHRW) Q2 Earnings Top Estimates, Decline Y/Y
C.H. Robinson Worldwide’s (CHRW - Free Report) second-quarter 2020 earnings of $1.06 per share surpassed the Zacks Consensus Estimate of 54 cents. However, the bottom line declined 13.1% year over year.
Although total revenues of $3,627.8 million outperformed the Zacks Consensus Estimate of $3,394.4 million, it decreased 7.2% year over year. This downside was due to lower pricing in truckload and less than truckload ("LTL") services.
Total operating expenses fell 9% year over year to $425.67 million, primarily due to short-term cost reductions of $40 million. However, operating ratio (operating expenses as a percentage of net revenues) deteriorated to 69.3% from 67.3% in the year-ago quarter. With respect to this metric, lower the value, the better.
The company returned $68.4 million to its shareholders through a combination of cash dividends ($67.2 million) and share repurchases ($1.2 million). Capital expenditures totaled $10.3 million in the quarter under review. Full-year capital expenses are expected in the low end of $60-$70 million, with the maximum reserved for technology spends.
C.H. Robinson Worldwide, Inc. Price, Consensus and EPS Surprise
C.H. Robinson Worldwide, Inc. price-consensus-eps-surprise-chart | C.H. Robinson Worldwide, Inc. Quote
Segmental Results
At North American Surface Transportation (“NAST”), total revenues were 2,475.29 million (down 13.8%) in the second quarter. Segmental revenues declined due to low pricing. Moreover, net revenues in the segment dropped 22% despite the Prime Distribution Services acquisition contributing 3 percentage points to segmental results. NAST results include Robinson Fresh transportation, which was previously reported under a separate segment.
Total revenues at Global Forwarding summed $707.82 million, up 91.5% year over year. Higher pricing in air, increased charter flights and larger shipment sizes boosted results. Net revenues at the segment climbed 14.8% 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 net revenues of $586.02 million in the quarter under consideration, down 12% from the prior-year figure.
Truckload net revenues declined 25% year over year to $278.37 million, with volumes decreasing 4.5% year over year. LTL net revenues also dropped 13% year over year to $106.96 million with volumes slipping 2% in the quarter.
At the Intermodal segment, net revenues increased 23.3% year over year to $7.77 million. Intermodal volumes were flat year over year. Net revenues at the Ocean transportation segment declined 7.7% year over year to $78.85 million. The same at the air transportation segment surged approximately 100% to $52.41 million. Meanwhile, customs net revenues slid 16.5% to $19.46 million.
However, Other logistics services’ net revenues rose 40.4% to $42.21 million.
Sourcing: Net revenues at the segment slipped 4% to $28.43 million.
Liquidity
This Zacks Rank #3 (Hold) company exited the second quarter with cash and cash equivalents of $362.24 million compared with $447.86 million at the end of 2019. Liquidity at the end of the quarter was $1.6 billion. Long-term debt was 1,092.87 million, compared to $1,092.45 million at 2019-end.
Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ second-quarter earnings.
Canadian National’s (CNI - Free Report) second-quarter 2020 earnings (excluding 36 cents from non-recurring items) of 92 cents per share (C$0.77) were in line with the Zacks Consensus Estimate. However, the bottom line declined 28.7% year over year. Quarterly revenues of $2,315 million (C$3,209 million) missed the Zacks Consensus Estimate of $2,407.6 million and fell 21.8% year over year. This company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
J.B. Hunt Transport (JBHT - Free Report) , carrying a Zacks Rank #3, reported second-quarter earnings of $1.14 per share that surpassed the Zacks Consensus Estimate by 31 cents. Total revenues of $2,145.6 million beat the Zacks Consensus Estimate of $2,060.9 million.
Kansas City Southern’s second-quarter earnings (excluding a penny from non-recurring items) of $1.15 per share beat the Zacks Consensus Estimate of $1.12. This Zacks Rank #3 company’s total revenues of $547.9 million lagged the consensus mark of $550.2 million.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>