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C.H. Robinson (CHRW) Up 2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for C.H. Robinson Worldwide (CHRW - Free Report) . Shares have added about 2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is C.H. Robinson 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.
Earnings Beat at C.H. Robinson in Q2
C.H. Robinson’s 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
The 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.
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?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 7.52% due to these changes.
VGM Scores
At this time, C.H. Robinson has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, C.H. Robinson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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C.H. Robinson (CHRW) Up 2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for C.H. Robinson Worldwide (CHRW - Free Report) . Shares have added about 2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is C.H. Robinson 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.
Earnings Beat at C.H. Robinson in Q2
C.H. Robinson’s 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
The 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 7.52% due to these changes.
VGM Scores
At this time, C.H. Robinson has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, C.H. Robinson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.