We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
C.H. Robinson Q1 Earnings Surpass Estimates, Increase Year Over Year
Read MoreHide Full Article
C.H. Robinson Worldwide, Inc. (CHRW - Free Report) reported mixed first-quarter 2025 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
Quarterly earnings per share (EPS) of $1.17 outpaced the Zacks Consensus Estimate of $1.02 and improved 36% year over year. Total revenues of $4.04 billion missed the Zacks Consensus Estimate of $4.31 billion and fell 8.2% year over year, owing to the divestiture of CHRW’s Europe Surface Transportation business, lower volume in its North America truckload services, and lower pricing in the ocean services.
Adjusted gross profits increased 2.3% year over year to $673.1 million, owing to higher adjusted gross profit per transaction in the company’s truckload and LTL services.
Adjusted operating margin of 26.3% increased 700 basis points from the year-ago reported quarter. Operating expenses decreased 6.5% year over year to $496.2 million.
C.H. Robinson Worldwide, Inc. Price, Consensus and EPS Surprise
CHRW’s president and chief executive officer, Dave Bozeman, stated, "Our first quarter results reflect progress in the disciplined execution of the strategies that we shared at our Investor Day in December — to take market share and expand our margins. We’re not waiting for a market recovery to improve our financial results, and the strategies that the Robinson team is executing are relevant in any market environment."
CHRW’s Q1 Segmental Results
North American Surface Transportation’s total revenues were $2.86 billion (down 4.4% year over year) in the first quarter, owing tolower truckload volume, reflecting a decline in market demand for freight. The actual segmental sales figure was below our expectation of $2.97 billion. Adjusted gross profits of the segment grew 5.3% year over year to $418.32 million.
Total revenues from Global Forwarding fell 9.8% year over year to $774.88 million, owing to lower pricing in the company’s ocean services. The actual segmental sales figure was below our expectation of $906.4 million. Adjusted gross profits grew 2.5% year over year to $184.62 million.
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) decreased 27.1% year over year to $403.43 million. The actual segmental sales figure was below our expectation of $534.2 million.
Below, we present the division of adjusted profits 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 $640.54million in the quarter under consideration, up 2.1% from the prior-year figure.
Adjusted gross profits of Truckload, LTL, Ocean, Air and Customs grew 1.9%, 5.2%, 2.2%, 7.5% and 3.2%, year over year, respectively. Other logistics services declined adjusted gross profits by 8% year over year.
Balance Sheet Data
CHRW exited the first quarter with cash and cash equivalents of $129.94 million compared with $145.76 million at the end of the prior quarter. Long-term debt was $922.08 million compared with $921.85 million at the end of the prior quarter.
CHRW generated $106.5 million of cash from operations in the first quarter compared with $33.3 million of cash used by operations in the prior-year quarter. The upside was owing to a $42.4 million increase in net income and a $136.8 million decrease in cash used by changes in net operating working capital.
In the first quarter of 2025, CHRW returned $175 million of cash to shareholders, including $77.5 million in cash dividends and $97.5 million through share repurchases.
Capital expenditures totaled $16.1 million in the reported quarter.
CHRW’s 2025 Outlook
Capital expenditures for 2025 are now expected to be between $65 million and $75 million, down from the prior guided range of $75-$85 million.
We note that another major player from the Zacks Transportation – Services industry, Expeditors International of Washington (EXPD - Free Report) , will report its first-quarter earnings numbers early next month. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Expeditors, a leading third-party logistics provider, is based in Seattle, WA. EXPD currently has an Earnings ESP of +3.76% and a Zacks Rank of 3. The company is slated to report first-quarter 2025 results on May 6.
While weak volumes (with respect to air-freight tonnage and ocean containers) stemming from soft demand and declining rates are likely to have hurt EXPD’s performance, efforts to cut costs in the face of demand weakness are likely to have driven the bottom line.
EXPD beat the Zacks Consensus Estimate in three of the last four quarters and matched estimates once, the average beat being 11.6%.
Q1 Performances of Other Transportation Companies
United Airlines
United Airlines’ (UAL - Free Report) first-quarter 2025 earnings per share (excluding 25 cents from non-recurring items) of 91 cents surpassed the Zacks Consensus Estimate of 75 cents. In the year-ago quarter, the Chicago-based airline reported a loss of 15 cents per share.
Operating revenues of $13.21 billion marginally fell short of the Zacks Consensus Estimate of $13.22 billion. The top line increased 5.4% year over year despite the tariff-induced slowdown in domestic air travel demand. Passenger revenues (which accounted for 89.7% of the top line) rose 4.8% year over year to $11.9 billion. UAL flights transported 40,806 passengers in the first quarter, up 3.8% year over year.
Delta Air Lines
Delta Air Lines(DAL - Free Report) reported first-quarter 2025 earnings (excluding 9 cents from non-recurring items) of 46 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents. Earnings increased 2.2% on a year-over-year basis due to low fuel costs.
Revenues in the March-end quarter were $14.04 billion, surpassing the Zacks Consensus Estimate of $13.81 billion and increasing 2.1% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) rose 3.3% year over year to $13 billion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
C.H. Robinson Q1 Earnings Surpass Estimates, Increase Year Over Year
C.H. Robinson Worldwide, Inc. (CHRW - Free Report) reported mixed first-quarter 2025 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
Quarterly earnings per share (EPS) of $1.17 outpaced the Zacks Consensus Estimate of $1.02 and improved 36% year over year. Total revenues of $4.04 billion missed the Zacks Consensus Estimate of $4.31 billion and fell 8.2% year over year, owing to the divestiture of CHRW’s Europe Surface Transportation business, lower volume in its North America truckload services, and lower pricing in the ocean services.
Adjusted gross profits increased 2.3% year over year to $673.1 million, owing to higher adjusted gross profit per transaction in the company’s truckload and LTL services.
Adjusted operating margin of 26.3% increased 700 basis points from the year-ago reported quarter. Operating expenses decreased 6.5% year over year to $496.2 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
CHRW’s president and chief executive officer, Dave Bozeman, stated, "Our first quarter results reflect progress in the disciplined execution of the strategies that we shared at our Investor Day in December — to take market share and expand our margins. We’re not waiting for a market recovery to improve our financial results, and the strategies that the Robinson team is executing are relevant in any market environment."
CHRW’s Q1 Segmental Results
North American Surface Transportation’s total revenues were $2.86 billion (down 4.4% year over year) in the first quarter, owing tolower truckload volume, reflecting a decline in market demand for freight. The actual segmental sales figure was below our expectation of $2.97 billion. Adjusted gross profits of the segment grew 5.3% year over year to $418.32 million.
Total revenues from Global Forwarding fell 9.8% year over year to $774.88 million, owing to lower pricing in the company’s ocean services. The actual segmental sales figure was below our expectation of $906.4 million. Adjusted gross profits grew 2.5% year over year to $184.62 million.
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) decreased 27.1% year over year to $403.43 million. The actual segmental sales figure was below our expectation of $534.2 million.
Below, we present the division of adjusted profits 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 $640.54million in the quarter under consideration, up 2.1% from the prior-year figure.
Adjusted gross profits of Truckload, LTL, Ocean, Air and Customs grew 1.9%, 5.2%, 2.2%, 7.5% and 3.2%, year over year, respectively. Other logistics services declined adjusted gross profits by 8% year over year.
Balance Sheet Data
CHRW exited the first quarter with cash and cash equivalents of $129.94 million compared with $145.76 million at the end of the prior quarter. Long-term debt was $922.08 million compared with $921.85 million at the end of the prior quarter.
CHRW generated $106.5 million of cash from operations in the first quarter compared with $33.3 million of cash used by operations in the prior-year quarter. The upside was owing to a $42.4 million increase in net income and a $136.8 million decrease in cash used by changes in net operating working capital.
In the first quarter of 2025, CHRW returned $175 million of cash to shareholders, including $77.5 million in cash dividends and $97.5 million through share repurchases.
Capital expenditures totaled $16.1 million in the reported quarter.
CHRW’s 2025 Outlook
Capital expenditures for 2025 are now expected to be between $65 million and $75 million, down from the prior guided range of $75-$85 million.
CHRW’s Zacks Rank
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.
We note that another major player from the Zacks Transportation – Services industry, Expeditors International of Washington (EXPD - Free Report) , will report its first-quarter earnings numbers early next month. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Expeditors, a leading third-party logistics provider, is based in Seattle, WA. EXPD currently has an Earnings ESP of +3.76% and a Zacks Rank of 3. The company is slated to report first-quarter 2025 results on May 6.
While weak volumes (with respect to air-freight tonnage and ocean containers) stemming from soft demand and declining rates are likely to have hurt EXPD’s performance, efforts to cut costs in the face of demand weakness are likely to have driven the bottom line.
EXPD beat the Zacks Consensus Estimate in three of the last four quarters and matched estimates once, the average beat being 11.6%.
Q1 Performances of Other Transportation Companies
United Airlines
United Airlines’ (UAL - Free Report) first-quarter 2025 earnings per share (excluding 25 cents from non-recurring items) of 91 cents surpassed the Zacks Consensus Estimate of 75 cents. In the year-ago quarter, the Chicago-based airline reported a loss of 15 cents per share.
Operating revenues of $13.21 billion marginally fell short of the Zacks Consensus Estimate of $13.22 billion. The top line increased 5.4% year over year despite the tariff-induced slowdown in domestic air travel demand. Passenger revenues (which accounted for 89.7% of the top line) rose 4.8% year over year to $11.9 billion. UAL flights transported 40,806 passengers in the first quarter, up 3.8% year over year.
Delta Air Lines
Delta Air Lines(DAL - Free Report) reported first-quarter 2025 earnings (excluding 9 cents from non-recurring items) of 46 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents. Earnings increased 2.2% on a year-over-year basis due to low fuel costs.
Revenues in the March-end quarter were $14.04 billion, surpassing the Zacks Consensus Estimate of $13.81 billion and increasing 2.1% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) rose 3.3% year over year to $13 billion.