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C.H. Robinson (CHRW) Q2 Earnings & Revenues Top, Rise Y/Y

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C.H. Robinson Worldwide, Inc.’s (CHRW - Free Report) second-quarter 2018 earnings per share of $1.13 beat the Zacks Consensus Estimate of $1.06. Moreover, the bottom line surged 44.9% year over year on higher revenues and lower tax rate.

Total revenues rose 15.3% year over year to $4,276.04 million, surpassing the Zacks Consensus Estimate of $4,196.96 million. The top line was also boosted by growth across all transportation service lines.

Effective tax rate in the reported quarter reduced to 25.6% from 35.6% a year ago owing to the Tax Cuts and Jobs Act of 2017.

Total operating expenses increased 15.4% year over year to $452.5 million. However, operating ratio (operating expenses as a percentage of net revenues) of 67.4% compared favorably with 68.3% in the year-ago period.

During the quarter under review, the company returned $136.2 million to shareholders through a combination of dividends ($65.2 million) and share repurchases ($71 million), reflecting an increase of 29.8% year over year.

C.H. Robinson Worldwide, Inc. Price, Consensus and EPS Surprise


C.H. Robinson Worldwide, Inc. Price, Consensus and EPS Surprise | C.H. Robinson Worldwide, Inc. Quote

Segmental Results

Total revenues at North American Surface Transportation (NAST) were $2.88 billion (up 20.9%) in the second quarter while the same at Global Forwarding totaled $617.6 million (up 16.8%). At Robinson Fresh, the metric logged $621.02 million (up 5.5%) year over year.

A historical presentation of results on an enterprise basis is given below:

Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) posted net revenues of $639.94 million in the quarter under consideration, up 18.8% from the prior-year period’s figure.

Truckload net revenues grew 20.8% year over year to $341.44 million. Additionally, net revenues at Less-than-Truckload rose 16.6% year over year to $119.19 million.

Net revenues at the Intermodal segment increased 10.5% year over year to $9.18 million.

Net revenues at the Ocean transportation segment improved 18.5% year over year to $87.04 million. The same at the Air transportation division rose 19.7% year over year to $30.91 million. Customs net revenues jumped 27.5% to $20.79 million.

Net revenues at Other logistics services climbed 5.2% year over year to $31.4 million.

Sourcing: Net revenues at the segment dropped 10.3% year over year to approximately $31.54 million.


This Zacks Rank #3 (Hold) company exited the second quarter with cash and cash equivalents of $310.58 million compared with $333.89 million at the end of 2017. Long-term debt was $1,341.05 million compared with $750 million at 2017 end.  You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.


The company continues to anticipate strong demand for freight on the back of an upbeat economy. Additionally, it reiterates capital expenditures in the range of $60-$70 million for 2018 with the majority spending on technology. Full-year effective tax rate is still expected between 24% and 25%.

Upcoming Releases

Investors interested in the broader Transportation sector are keenly awaiting second-quarter earnings reports from key players, namely Gol Linhas Aereas Inteligentes S.A. (GOL - Free Report) , Expeditors International of Washington, Inc. (EXPD - Free Report) and Air Lease Corporation (AL - Free Report) . While Gol Linhas will report second-quarter earnings on Aug 2, Expeditors and Air Lease will release the same on Aug 7 and Aug 9, respectively.

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