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C.H. Robinson (CHRW) Down 2.5% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for C.H. Robinson Worldwide (CHRW - Free Report) . Shares have lost about 2.5% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is C.H. Robinson due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat at C.H. Robinson in Q1
C.H. Robinson's earnings of $2.05 per share surpassed the Zacks Consensus Estimate of $1.54. Moreover, the bottom line surged 60.16% year over year. Total revenues of $6,816 million outperformed the Zacks Consensus Estimate of $5,956.7 million. The top line jumped 41.88% year over year owing to favorable truckload pricing to customers and handsome profits in ocean freight.
Total operating expenses increased 17% year over year to $560.7 million due to higher personnel, and selling, general and administrative expenses. Adjusted gross profit climbed 29% year over year to $906.2 million, primarily owing to higher volumes across most of CHRW’s services and increased adjusted gross profit per transaction.
C.H. Robinson returned $250.6 million to its shareholders in the first quarter through a combination of cash dividends ($72.9 million) and share repurchases ($177.7 million). Capital expenditures totaled $26.2 million in the quarter under review. CHRW expects capital expenditures in the band of $90-$100 million for 2022. The majority of the amount is aimed at technology investments.
Segmental Results
At North American Surface Transportation (NAST), total revenues were $4.1 billion (up 28.1% year over year) in the first quarter. Segmental revenues benefited from higher truckload and less-than-truckload (LTL) pricing as well as increased truckload shipments. Adjusted gross profit at the segment ascended 20.2%, driven by a 19.5% increase in truckload adjusted gross profit, which was helped by the rise in adjusted gross profit per load and an increase in shipments.
Total revenues at Global Forwarding were $2.2 billion, up more than 89% year over year. Results were boosted by higher pricing and volume in CHRW’s ocean as well as air services. This upbeat scenario is reflective of the strong demand scenario and strained capacity. Adjusted gross profit at the segment surged 50.2% year over year.
Below we present the division of adjusted profit among the service lines.
Transportation: The unit (comprising Truckload, Intermodal, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $878.12 million in the quarter under consideration, up 29.3% from the prior-year figure.
Adjusted gross profit at the Truckload sub-group climbed 19.9% year over year to $359.78 million. LTL adjusted gross profit increased 25.3% year over year to $152.31 million.
Adjusted gross profit at the Ocean transportation segment jumped 63.4% year over year to $221.46 million. The same at the air transportation sub-group climbed 33.9% to $61.43 million. Customs-adjusted gross profit augmented 13.5% to $27.49 million.
Other logistics services’ adjusted gross profit rose 7.5 % to $55.63 million.
Sourcing: Adjusted gross profit at the segment increased 19.8% to $28.1 million.
Liquidity
The company exited the first quarter with cash and cash equivalents of $242.8 million compared with $257.4 million at the end of December 2021. Long-term debt was $1.59 billion compared with $1.39 billion at the end of 2021.
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 estimates revision.
The consensus estimate has shifted 14.72% due to these changes.
VGM Scores
Currently, C.H. Robinson has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise C.H. Robinson has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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C.H. Robinson (CHRW) Down 2.5% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for C.H. Robinson Worldwide (CHRW - Free Report) . Shares have lost about 2.5% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is C.H. Robinson due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat at C.H. Robinson in Q1
C.H. Robinson's earnings of $2.05 per share surpassed the Zacks Consensus Estimate of $1.54. Moreover, the bottom line surged 60.16% year over year. Total revenues of $6,816 million outperformed the Zacks Consensus Estimate of $5,956.7 million. The top line jumped 41.88% year over year owing to favorable truckload pricing to customers and handsome profits in ocean freight.
Total operating expenses increased 17% year over year to $560.7 million due to higher personnel, and selling, general and administrative expenses. Adjusted gross profit climbed 29% year over year to $906.2 million, primarily owing to higher volumes across most of CHRW’s services and increased adjusted gross profit per transaction.
C.H. Robinson returned $250.6 million to its shareholders in the first quarter through a combination of cash dividends ($72.9 million) and share repurchases ($177.7 million). Capital expenditures totaled $26.2 million in the quarter under review. CHRW expects capital expenditures in the band of $90-$100 million for 2022. The majority of the amount is aimed at technology investments.
Segmental Results
At North American Surface Transportation (NAST), total revenues were $4.1 billion (up 28.1% year over year) in the first quarter. Segmental revenues benefited from higher truckload and less-than-truckload (LTL) pricing as well as increased truckload shipments. Adjusted gross profit at the segment ascended 20.2%, driven by a 19.5% increase in truckload adjusted gross profit, which was helped by the rise in adjusted gross profit per load and an increase in shipments.
Total revenues at Global Forwarding were $2.2 billion, up more than 89% year over year. Results were boosted by higher pricing and volume in CHRW’s ocean as well as air services. This upbeat scenario is reflective of the strong demand scenario and strained capacity. Adjusted gross profit at the segment surged 50.2% year over year.
Below we present the division of adjusted profit among the service lines.
Transportation: The unit (comprising Truckload, Intermodal, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $878.12 million in the quarter under consideration, up 29.3% from the prior-year figure.
Adjusted gross profit at the Truckload sub-group climbed 19.9% year over year to $359.78 million. LTL adjusted gross profit increased 25.3% year over year to $152.31 million.
Adjusted gross profit at the Ocean transportation segment jumped 63.4% year over year to $221.46 million. The same at the air transportation sub-group climbed 33.9% to $61.43 million. Customs-adjusted gross profit augmented 13.5% to $27.49 million.
Other logistics services’ adjusted gross profit rose 7.5 % to $55.63 million.
Sourcing: Adjusted gross profit at the segment increased 19.8% to $28.1 million.
Liquidity
The company exited the first quarter with cash and cash equivalents of $242.8 million compared with $257.4 million at the end of December 2021. Long-term debt was $1.59 billion compared with $1.39 billion at the end of 2021.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 14.72% due to these changes.
VGM Scores
Currently, C.H. Robinson has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise C.H. Robinson has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.