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Why Is C.H. Robinson (CHRW) Up 0.8% Since Last Earnings Report?
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A month has gone by since the last earnings report for C.H. Robinson Worldwide (CHRW - Free Report) . Shares have added about 0.8% 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 the most recent earnings report in order to get a better handle on the important catalysts.
C.H. Robinson Q3 Earnings Beat Estimates
C.H. Robinson third-quarter 2023 earnings of 84 cents per share beat the Zacks Consensus Estimate of 82 cents but declined 52.8% year over year. Total revenues of $4,341 million lagged the Zacks Consensus Estimate of $4,370 million and declined 27.8% year over year owing to lower pricing in the company’s ocean and truckload services.
Operating expenses declined 13.1% year over year to $521.3 million.
Adjusted gross profits fell 28.4% year over year to $634.8 million, owing to lower adjusted gross profit per transaction in truckload and ocean. Adjusted operating margin fell 1,450 basis points to 17.9%
Segmental Results
North American Surface Transportation’s total revenues were $3,086.97million (down 22.9% year over year) in the third quarter owing to lower truckload pricing. Adjusted gross profit of the segment declined 31.4% to $386.51 million.
Total revenues from Global Forwarding fell 52.4% to $719.04million, owing to lower pricing in CHRW’s ocean service. Adjusted gross profit of the segment fell 31.6% year over year to $169.89million
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) increased 6.6% to $535.01 million.
Below we present the division of adjusted profit among the service lines (on an enterprise basis).
Transportation: The unit (comprising Truckload, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $607.44million in the quarter under consideration, down 29.5% from the prior-year figure.
Adjusted gross profits of Truckload, LTL and Customs declined 38.4%, 14.9% and 10.7% year over year to $245.43 million, $137.94 million and $24.90 million, respectively. However, other logistics services’ adjusted gross profit fell 0.9% to $64.84 million.
Adjusted gross profit of the Ocean transportation segment fell 35% year over year. The metric fell 36.9% to $30.20 million in the Air transportation sub-group.
Balance-Sheet Data
CHRW exited the third quarter with cash and cash equivalents of $174.73 million compared with $210.15 million at the end of June 2023. Long-term debt was $920.72 million compared with $920.49 million at the end of June 2023.
CHRW generated $205.2 million of cash from operations in the third quarter. Capital expenditures were $16.7 million in the reported quarter.
In the third quarter of 2023, CHRW repurchased shares worth $3 million and paid $72.7 million in cash dividends.
2023 Outlook
Capital expenditures for 2023 are anticipated toward the lower end of the previously announced guidance of $90 million to $100 million.
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 a downward trend in fresh estimates.
The consensus estimate has shifted -14.7% due to these changes.
VGM Scores
Currently, C.H. Robinson has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. 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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Why Is C.H. Robinson (CHRW) Up 0.8% Since Last Earnings Report?
A month has gone by since the last earnings report for C.H. Robinson Worldwide (CHRW - Free Report) . Shares have added about 0.8% 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 the most recent earnings report in order to get a better handle on the important catalysts.
C.H. Robinson Q3 Earnings Beat Estimates
C.H. Robinson third-quarter 2023 earnings of 84 cents per share beat the Zacks Consensus Estimate of 82 cents but declined 52.8% year over year. Total revenues of $4,341 million lagged the Zacks Consensus Estimate of $4,370 million and declined 27.8% year over year owing to lower pricing in the company’s ocean and truckload services.
Operating expenses declined 13.1% year over year to $521.3 million.
Adjusted gross profits fell 28.4% year over year to $634.8 million, owing to lower adjusted gross profit per transaction in truckload and ocean. Adjusted operating margin fell 1,450 basis points to 17.9%
Segmental Results
North American Surface Transportation’s total revenues were $3,086.97million (down 22.9% year over year) in the third quarter owing to lower truckload pricing. Adjusted gross profit of the segment declined 31.4% to $386.51 million.
Total revenues from Global Forwarding fell 52.4% to $719.04million, owing to lower pricing in CHRW’s ocean service. Adjusted gross profit of the segment fell 31.6% year over year to $169.89million
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) increased 6.6% to $535.01 million.
Below we present the division of adjusted profit among the service lines (on an enterprise basis).
Transportation: The unit (comprising Truckload, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $607.44million in the quarter under consideration, down 29.5% from the prior-year figure.
Adjusted gross profits of Truckload, LTL and Customs declined 38.4%, 14.9% and 10.7% year over year to $245.43 million, $137.94 million and $24.90 million, respectively. However, other logistics services’ adjusted gross profit fell 0.9% to $64.84 million.
Adjusted gross profit of the Ocean transportation segment fell 35% year over year. The metric fell 36.9% to $30.20 million in the Air transportation sub-group.
Balance-Sheet Data
CHRW exited the third quarter with cash and cash equivalents of $174.73 million compared with $210.15 million at the end of June 2023. Long-term debt was $920.72 million compared with $920.49 million at the end of June 2023.
CHRW generated $205.2 million of cash from operations in the third quarter. Capital expenditures were $16.7 million in the reported quarter.
In the third quarter of 2023, CHRW repurchased shares worth $3 million and paid $72.7 million in cash dividends.
2023 Outlook
Capital expenditures for 2023 are anticipated toward the lower end of the previously announced guidance of $90 million to $100 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -14.7% due to these changes.
VGM Scores
Currently, C.H. Robinson has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, C.H. Robinson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.