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C.H. Robinson (CHRW) Q2 Earnings Beat, Increase 36% Y/Y

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C.H. Robinson Worldwide’s (CHRW - Free Report) second-quarter 2021 earnings of $1.44 per share surpassed the Zacks Consensus Estimate of $1.31. The bottom line surged 35.8% year over year.

Total revenues of $5,532.7 million also outperformed the Zacks Consensus Estimate of $4,937.1 million. The top line soared 52.5% year over year owing to higher pricing and volumes across most of the company’s service lines, thanks to improvement in freight environment.

Total operating expenses increased 14.8% year over year to $488.6 million due to higher personnel expenses. Adjusted gross profit climbed 21.9% year over year to $749.2 million, primarily owing to increased volumes in ocean, truckload, less than truckload ("LTL") and air services, as well as higher adjusted gross profit per shipment in ocean and truckload services.

The company returned $204.8 million to its shareholders in the second quarter through a combination of cash dividends ($69.7 million) and share repurchases ($135.1 million). Capital expenditures totaled $16.3 million in the quarter under review. The company continues to expect capital expenditures in the band of $55-$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 $3.58 billion (up 44.9%) in the second quarter. Segmental revenues benefited from higher truckload pricing and an increase in LTL and truckload shipments. Adjusted gross profit at the segment ascended 15%, driven by 13.6% increase in truckload adjusted gross profit, which in turn was helped by rise in adjusted gross profit per load and increase in shipments. NAST results include Robinson Fresh transportation, which was previously reported under a separate segment.

Total revenues at Global Forwarding were $1.45 billion, up more than 100% year over year. With increased freight demand, higher pricing in ocean services and improved volumes in ocean and air services units boosted results. Adjusted gross profit at the segment surged 46.5% 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 $721.14 million in the quarter under consideration, up 23.1% from the prior-year figure.

Adjusted gross profit at the Truckload segment climbed 10.7% year over year to $308.03 million. LTL adjusted gross profit increased 21.4% year over year to $129.87 million, with volumes rising 23.5% in the quarter.

Adjusted gross profit at the Ocean transportation segment jumped 91.5% year over year to $150.99 million. The same at the air transportation segment inched up 1.2% to $53.06 million. Customs-adjusted gross profit augmented 31.1% to $25.51 million.

Other logistics services’ adjusted gross profit rose 7.4% to $53.69 million.

Sourcing: Adjusted gross profit at the segment dipped 1.4% to $28.03 million.

Liquidity

This Zacks Rank #2 (Buy) company exited the second quarter with cash and cash equivalents of $172.80 million compared with $243.80 million at the end of December 2020. Long-term debt was $1.10 billion compared with $1.09 billion at the end of December 2020. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Sectorial Snapshot

Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Transportation sector.

Knight-Swift Transportation Holdings (KNX - Free Report) , carrying a Zacks Rank #2, reported second-quarter 2021 earnings (excluding 6 cents from non-recurring items) of 98 cents per share, surpassing the Zacks Consensus Estimate of 87 cents. Total revenues of $1,315.7 million also outperformed the Zacks Consensus Estimate of $1,300.8 million.

United Parcel Service (UPS - Free Report) , carrying a Zacks Rank #3 (Hold), reported second-quarter 2021 earnings (excluding a penny from non-recurring items) of $3.06 per share, beating the Zacks Consensus Estimate of $2.75. Quarterly revenues of $23,424 million also outperformed the Zacks Consensus Estimate of $23,085.4 million.

Ryanair Holdings (RYAAY - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss of $1.46 per share in the first quarter of fiscal 2022 (ended Jun 30, 2021), narrower than the Zacks Consensus Estimate of a loss of $1.50. Quarterly revenues of $446.4 million fell short of the Zacks Consensus Estimate of $459 million.