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C.H. Robinson (CHRW) Up 0.8% 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 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 drivers.
C.H. Robinson Q4 Earnings Lag Estimates
C.H. Robinson fourth-quarter 2023 earnings of 50 cents per share 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%.
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 end of prior quarter. Long-term debt was $1.42 billion compared with $920.72 million at the end of 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 between $85 million and $95 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?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -22.69% due to these changes.
VGM Scores
At this time, C.H. Robinson has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 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. It's no surprise C.H. Robinson has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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C.H. Robinson (CHRW) Up 0.8% 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 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 drivers.
C.H. Robinson Q4 Earnings Lag Estimates
C.H. Robinson fourth-quarter 2023 earnings of 50 cents per share 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%.
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 end of prior quarter. Long-term debt was $1.42 billion compared with $920.72 million at the end of 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 between $85 million and $95 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -22.69% due to these changes.
VGM Scores
At this time, C.H. Robinson has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 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. It's no surprise C.H. Robinson has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.