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C.H. Robinson (CHRW) Q4 Earnings Top, Revenues Lag Estimates
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C.H. Robinson Worldwide, Inc.’s (CHRW - Free Report) fourth-quarter 2018 earnings per share of $1.34 beat the Zacks Consensus Estimate of $1.20. The bottom line also improved substantially year over year.
Total revenues of $4,137.9 million fell short of the Zacks Consensus Estimate of $4,237.4 million. However, the top line rose 4.5% year over year, buoyed by growth across all transportation service lines.
Total operating expenses increased 8.9% year over year to $458.3 million. However, operating ratio (operating expenses as a percentage of net revenues) of 64.2% compared favorably with 66.6% in the year-ago period.
During the quarter under review, the company returned $168.4 million to shareholders through a combination of dividends ($70 million) and share repurchases ($98.4 million), reflecting a surge of 42.4% year over year. The company will remain focused on rewarding shareholders.
C.H. Robinson Worldwide, Inc. Price, Consensus and EPS Surprise
Total revenues at North American Surface Transportation (NAST) were $2.77 billion (up 6%) in the fourth quarter while the same at Global Forwarding totaled $677.13 million (up 14.5%). At Robinson Fresh, the metric logged $531.82 million (down 10.6%) 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) delivered net revenues of $688.89 million in the quarter under consideration, up 13.9% from the prior-year period’s figure.
Truckload net revenues grew 15.6% year over year to $395.61 million. Additionally, net revenues at Less-than-Truckload improved 11.4% year over year to $117.33 million.
Net revenues at the Intermodal segment jumped 46.5% year over year to $8.6 million.
Net revenues at the Ocean transportation segment climbed 12.4% year over year to $82.23 million. The same at the Air transportation division ascended 11.5% year over year to $30.76 million. Customs net revenues augmented 12.4% to $23.76 million.
Net revenues at Other logistics services inched up 3.5% year over year to $30.6 million.
Sourcing: Net revenues at the segment dropped 8.2% year over year to approximately $24.89 million.
Liquidity
This Zacks Rank #3 (Hold) company exited the fourth quarter with cash and cash equivalents of $378.62 million compared with $333.89 million at the end of 2017. Long-term debt was $1,341.35 million compared with $750 million at 2017 end. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
2019 Outlook
The company anticipates capital expenditures between $80 and $90 million for 2019 with the majority to be spent on technology. Additionally, effective tax rate is estimated in the range of 24-25% for the current year.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting fourth-quarter earnings reports from key players, namely Expeditors International of Washington, Inc. (EXPD - Free Report) , Old Dominion Freight Line, Inc. (ODFL - Free Report) and Air Lease Corporation (AL - Free Report) . While Old Dominion will release fourth-quarter results on Feb 7, Expeditors and Air Lease will report the same on Feb 19 and Feb 21, respectively.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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C.H. Robinson (CHRW) Q4 Earnings Top, Revenues Lag Estimates
C.H. Robinson Worldwide, Inc.’s (CHRW - Free Report) fourth-quarter 2018 earnings per share of $1.34 beat the Zacks Consensus Estimate of $1.20. The bottom line also improved substantially year over year.
Total revenues of $4,137.9 million fell short of the Zacks Consensus Estimate of $4,237.4 million. However, the top line rose 4.5% year over year, buoyed by growth across all transportation service lines.
Total operating expenses increased 8.9% year over year to $458.3 million. However, operating ratio (operating expenses as a percentage of net revenues) of 64.2% compared favorably with 66.6% in the year-ago period.
During the quarter under review, the company returned $168.4 million to shareholders through a combination of dividends ($70 million) and share repurchases ($98.4 million), reflecting a surge of 42.4% year over year. The company will remain focused on rewarding shareholders.
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 $2.77 billion (up 6%) in the fourth quarter while the same at Global Forwarding totaled $677.13 million (up 14.5%). At Robinson Fresh, the metric logged $531.82 million (down 10.6%) 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) delivered net revenues of $688.89 million in the quarter under consideration, up 13.9% from the prior-year period’s figure.
Truckload net revenues grew 15.6% year over year to $395.61 million. Additionally, net revenues at Less-than-Truckload improved 11.4% year over year to $117.33 million.
Net revenues at the Intermodal segment jumped 46.5% year over year to $8.6 million.
Net revenues at the Ocean transportation segment climbed 12.4% year over year to $82.23 million. The same at the Air transportation division ascended 11.5% year over year to $30.76 million. Customs net revenues augmented 12.4% to $23.76 million.
Net revenues at Other logistics services inched up 3.5% year over year to $30.6 million.
Sourcing: Net revenues at the segment dropped 8.2% year over year to approximately $24.89 million.
Liquidity
This Zacks Rank #3 (Hold) company exited the fourth quarter with cash and cash equivalents of $378.62 million compared with $333.89 million at the end of 2017. Long-term debt was $1,341.35 million compared with $750 million at 2017 end. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
2019 Outlook
The company anticipates capital expenditures between $80 and $90 million for 2019 with the majority to be spent on technology. Additionally, effective tax rate is estimated in the range of 24-25% for the current year.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting fourth-quarter earnings reports from key players, namely Expeditors International of Washington, Inc. (EXPD - Free Report) , Old Dominion Freight Line, Inc. (ODFL - Free Report) and Air Lease Corporation (AL - Free Report) . While Old Dominion will release fourth-quarter results on Feb 7, Expeditors and Air Lease will report the same on Feb 19 and Feb 21, respectively.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>