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C.H. Robinson (CHRW) Q3 Earnings & Revenues Lag, Down Y/Y
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C.H. Robinson Worldwide (CHRW - Free Report) reported disappointing third-quarter 2022 results wherein both earnings and revenues missed the Zacks Consensus Estimate.
Quarterly earnings of $1.78 per share missed the Zacks Consensus Estimate of $2.15 and declined 3.8% year over year. Total revenues of $6,015.4 million lagged the Zacks Consensus Estimate of $6,368.2 million and declined 4% year over year. The year-over-year downfall was due to the lower ocean and air pricing, partially offset by higher pricing in less-than-truckload (LTL) and truckload.
Operating expenses grew 12.4% year over year to $599.6 million. Adjusted gross profit climbed 5.1% year over year to $887.19 million.
C.H. Robinson Worldwide, Inc. Price, Consensus and EPS Surprise
At North American Surface Transportation, total revenues were $4,002.46 million (up 4.9% year over year) in the third quarter. Segmental revenues benefited from higher LTL and truckload pricing. Adjusted gross profit at the segment ascended 22.5%.
Total revenues at Global Forwarding were $1,511.11 million, down 23.6% year over year. Results were weighed down by lower pricing and volumes in CHRW’s ocean and air services, reflecting softening market demand. Adjusted gross profit at the segmentfell 20.1% year over year.
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) increased 6.8% to $501.8 million.
Below we present the division of adjusted profit among the service lines (on an enterprise basis).
Transportation: The unit (comprising Truckload, Intermodal, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $861.82 million in the quarter under consideration, up 5.2% from the prior-year figure.
Adjusted gross profit at the Truckload sub-group climbed 19.6% year over year to $398.41 million. LTL’s adjusted gross profit increased 22.4% year over year to $162.13 million. Customs-adjusted gross profit augmented 9.5% to $27.88 million. Other logistics services’ adjusted gross profit rose 23.4% to $65.44 million.
Adjusted gross profit at the Ocean transportation segment fell 25.5% year over year to $160.12 million. The same at the air transportation sub-group fell 21% to $47.83 million.
Balance-Sheet Data
CHRW exited the third quarter with cash and cash equivalents of $187.53 million compared with $238.92 million at the end of June 2022. Long-term debt was $1.42 billion compared with $1.59 billion at the end of June 2022.
CHRW generated $625.5 million of cash from operations in the third quarter. Capital expenditures came in at $31.3 million in the reported quarter.Capital expenditures for 2022 are anticipated to lie at the high end of the previously guided range of $110-$120 million.
In the third quarter, the company repurchased shares worth $535.7 million and paid $71 million in dividends.
Delta AirLines’ (DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An upbeat in air-travel demand aided results. In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.JBHT’squarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
Total operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across — Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.
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C.H. Robinson (CHRW) Q3 Earnings & Revenues Lag, Down Y/Y
C.H. Robinson Worldwide (CHRW - Free Report) reported disappointing third-quarter 2022 results wherein both earnings and revenues missed the Zacks Consensus Estimate.
Quarterly earnings of $1.78 per share missed the Zacks Consensus Estimate of $2.15 and declined 3.8% year over year. Total revenues of $6,015.4 million lagged the Zacks Consensus Estimate of $6,368.2 million and declined 4% year over year. The year-over-year downfall was due to the lower ocean and air pricing, partially offset by higher pricing in less-than-truckload (LTL) and truckload.
Operating expenses grew 12.4% year over year to $599.6 million. Adjusted gross profit climbed 5.1% year over year to $887.19 million.
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, total revenues were $4,002.46 million (up 4.9% year over year) in the third quarter. Segmental revenues benefited from higher LTL and truckload pricing. Adjusted gross profit at the segment ascended 22.5%.
Total revenues at Global Forwarding were $1,511.11 million, down 23.6% year over year. Results were weighed down by lower pricing and volumes in CHRW’s ocean and air services, reflecting softening market demand. Adjusted gross profit at the segmentfell 20.1% year over year.
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) increased 6.8% to $501.8 million.
Below we present the division of adjusted profit among the service lines (on an enterprise basis).
Transportation: The unit (comprising Truckload, Intermodal, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $861.82 million in the quarter under consideration, up 5.2% from the prior-year figure.
Adjusted gross profit at the Truckload sub-group climbed 19.6% year over year to $398.41 million. LTL’s adjusted gross profit increased 22.4% year over year to $162.13 million. Customs-adjusted gross profit augmented 9.5% to $27.88 million. Other logistics services’ adjusted gross profit rose 23.4% to $65.44 million.
Adjusted gross profit at the Ocean transportation segment fell 25.5% year over year to $160.12 million. The same at the air transportation sub-group fell 21% to $47.83 million.
Balance-Sheet Data
CHRW exited the third quarter with cash and cash equivalents of $187.53 million compared with $238.92 million at the end of June 2022. Long-term debt was $1.42 billion compared with $1.59 billion at the end of June 2022.
CHRW generated $625.5 million of cash from operations in the third quarter. Capital expenditures came in at $31.3 million in the reported quarter.Capital expenditures for 2022 are anticipated to lie at the high end of the previously guided range of $110-$120 million.
In the third quarter, the company repurchased shares worth $535.7 million and paid $71 million in dividends.
Currently, C.H. Robinson carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
Delta AirLines’ (DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An upbeat in air-travel demand aided results. In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.JBHT’squarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
Total operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across — Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.