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C.H. Robinson (CHRW) Q4 Earnings & Revenues Lag, Down Y/Y
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C.H. Robinson Worldwide, Inc. (CHRW - Free Report) fourth-quarter 2023 earnings per share (EPS) of 50 cents missed the Zacks Consensus Estimate of 80 cents and declined year over year. Total revenues of $4,221.9 million lagged the Zacks Consensus Estimate of $4,352.1 million and declined 16.7% year over year owing to lower pricing in the company’s ocean and truckload services.
Operating expenses declined 15.4% year over year to $511.2 million.
Adjusted gross profits fell 19.5% year over year to $618.6 million, owing to lower adjusted gross profit per transaction in truckload. Adjusted operating margin fell 400 basis points to 17.4%.
C.H. Robinson Worldwide, Inc. Price, Consensus and EPS Surprise
North American Surface Transportation’s total revenues were $3.00billion (down 15.8% year over year) in the fourth quarter, owing to lower truckload pricing. The actual figure was lower than our estimate of $3.10 billion. Adjusted gross profit of the segment declined 24.3% to $380.15 million.
Total revenues from Global Forwarding fell 30% to $708.81 million, owing to lower pricing in CHRW’s ocean service. The actual figure was lower than our estimate of $729.1 million. Adjusted gross profit of the segment fell 14% year over year to $162.32million.
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) increased 4.5% to $512.42 million. The actual figure was lower than our estimate of $536.5 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 $590.98million in the quarter under consideration, down 20.3% from the prior-year figure.
Adjusted gross profits of Truckload, LTL, Ocean, Air, Customs and Other logistics services declined 29.7%, 8.6%,17.5%, 11.9%, 3.1% and 13.8% year over year, respectively.
Balance-Sheet Data
CHRW exited the fourth quarter with cash and cash equivalents of $145.52 million compared with $174.73 million at the third-quarter end. Long-term debt was $1.42 billion compared with $920.72 million at the end of the prior quarter.
CHRW generated $47.3 million of cash from operations in the fourth quarter. Capital expenditures were $16.1 million in the reported quarter.
In the fourth quarter of 2023, CHRW returned $74.1 million of cash to shareholders, which includes $72.6 million in the form of dividend payments and $1.5 million in the form of share repurchases.
2024 Outlook
Capital expenditures for 2024 are anticipated to be between $85 million and $95 million.
Currently, C.H. Robinson carries a Zacks Rank #4 (Sell).
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70 million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
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C.H. Robinson (CHRW) Q4 Earnings & Revenues Lag, Down Y/Y
C.H. Robinson Worldwide, Inc. (CHRW - Free Report) fourth-quarter 2023 earnings per share (EPS) of 50 cents missed the Zacks Consensus Estimate of 80 cents and declined year over year. Total revenues of $4,221.9 million lagged the Zacks Consensus Estimate of $4,352.1 million and declined 16.7% year over year owing to lower pricing in the company’s ocean and truckload services.
Operating expenses declined 15.4% year over year to $511.2 million.
Adjusted gross profits fell 19.5% year over year to $618.6 million, owing to lower adjusted gross profit per transaction in truckload. Adjusted operating margin fell 400 basis points to 17.4%.
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
North American Surface Transportation’s total revenues were $3.00billion (down 15.8% year over year) in the fourth quarter, owing to lower truckload pricing. The actual figure was lower than our estimate of $3.10 billion. Adjusted gross profit of the segment declined 24.3% to $380.15 million.
Total revenues from Global Forwarding fell 30% to $708.81 million, owing to lower pricing in CHRW’s ocean service. The actual figure was lower than our estimate of $729.1 million. Adjusted gross profit of the segment fell 14% year over year to $162.32million.
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) increased 4.5% to $512.42 million. The actual figure was lower than our estimate of $536.5 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 $590.98million in the quarter under consideration, down 20.3% from the prior-year figure.
Adjusted gross profits of Truckload, LTL, Ocean, Air, Customs and Other logistics services declined 29.7%, 8.6%,17.5%, 11.9%, 3.1% and 13.8% year over year, respectively.
Balance-Sheet Data
CHRW exited the fourth quarter with cash and cash equivalents of $145.52 million compared with $174.73 million at the third-quarter end. Long-term debt was $1.42 billion compared with $920.72 million at the end of the prior quarter.
CHRW generated $47.3 million of cash from operations in the fourth quarter. Capital expenditures were $16.1 million in the reported quarter.
In the fourth quarter of 2023, CHRW returned $74.1 million of cash to shareholders, which includes $72.6 million in the form of dividend payments and $1.5 million in the form of share repurchases.
2024 Outlook
Capital expenditures for 2024 are anticipated to be between $85 million and $95 million.
Currently, C.H. Robinson carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70 million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.