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C.H. Robinson (CHRW) Up 0.8% Since Last Earnings Report: Can It Continue?
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A month has gone by 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 catalysts.
C.H. Robinson Beats on Q2 Earnings
C.H. Robinson second-quarter 2024 earnings of $1.15 per share outpaced the Zacks Consensus Estimate of 95 cents and improved 27.7% year over year. Total revenues of $4.483 billion marginally missed the Zacks Consensus Estimate of $4.484 billion but improved 1.4% year over year owing to higher pricing in the company’s ocean services, partially offset by lower pricing in its truckload services.
Adjusted gross profits increased 3.3% year over year to $687.4 million, owing to higher adjusted gross profit per transaction in truckload and less than truckload (“LTL”) services.
Adjusted operating margin of 25.9% improved 600 basis points from the year-ago reported quarter.
Operating expenses decreased 4.4% year over year to $509.3 million.
Segmental Results
North American Surface Transportation’s total revenues were $2.989 billion (down 2.9% year over year) in the second quarter owing to lower truckload pricing, reflecting an oversupply of truckload capacity compared to freight demand. Adjusted gross profit of the segment grew 4.8% to $419.7 million.
Total revenues from Global Forwarding grew 18.1% year over year to $921.2 million, owing to higher pricing in the company’s ocean services. Adjusted gross profits grew 2.7% to $184.1 million.
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) increased 5.2% to $39.9 million owing to an increase in integrated supply chain solutions for retail and foodservice customers.
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 $651.54million in the quarter under consideration, up 3.2% from the prior-year figure.
Adjusted gross profits of Truckload, LTL, Ocean and Customs grew 5%, 6.3%, 8.5% and 6.1%, year over year, respectively. For, Air and Other logistics services declined adjusted gross profits 8.4% and 13.9% year over year, respectively.
Balance-Sheet Data
CHRW exited the second quarter with cash and cash equivalents of $113.16 million compared with $121.84 million at the end of prior quarter. Long-term debt was $1.421 billion compared with $1.420 billion at the end of prior quarter.
CHRW generated $166.4 million of cash from operations in the second quarter. Capital expenditures totaled $19.3 million in the reported quarter.
In the second quarter of 2024, CHRW returned $76.4 million of cash to shareholders which includes $72.7 million in the form of cash dividends and $3.7 million through share repurchases.
2024 Outlook
Capital expenditures for 2024 are expected to be toward the lower end of the previously provided range of $85 million to $95 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 10.14% due to these changes.
VGM Scores
Currently, C.H. Robinson has an average Growth Score of C, a grade with the same score on the momentum front. 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise C.H. Robinson has a Zacks Rank #1 (Strong Buy). We expect an above 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?
A month has gone by 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 catalysts.
C.H. Robinson Beats on Q2 Earnings
C.H. Robinson second-quarter 2024 earnings of $1.15 per share outpaced the Zacks Consensus Estimate of 95 cents and improved 27.7% year over year. Total revenues of $4.483 billion marginally missed the Zacks Consensus Estimate of $4.484 billion but improved 1.4% year over year owing to higher pricing in the company’s ocean services, partially offset by lower pricing in its truckload services.
Adjusted gross profits increased 3.3% year over year to $687.4 million, owing to higher adjusted gross profit per transaction in truckload and less than truckload (“LTL”) services.
Adjusted operating margin of 25.9% improved 600 basis points from the year-ago reported quarter.
Operating expenses decreased 4.4% year over year to $509.3 million.
Segmental Results
North American Surface Transportation’s total revenues were $2.989 billion (down 2.9% year over year) in the second quarter owing to lower truckload pricing, reflecting an oversupply of truckload capacity compared to freight demand. Adjusted gross profit of the segment grew 4.8% to $419.7 million.
Total revenues from Global Forwarding grew 18.1% year over year to $921.2 million, owing to higher pricing in the company’s ocean services. Adjusted gross profits grew 2.7% to $184.1 million.
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) increased 5.2% to $39.9 million owing to an increase in integrated supply chain solutions for retail and foodservice customers.
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 $651.54million in the quarter under consideration, up 3.2% from the prior-year figure.
Adjusted gross profits of Truckload, LTL, Ocean and Customs grew 5%, 6.3%, 8.5% and 6.1%, year over year, respectively. For, Air and Other logistics services declined adjusted gross profits 8.4% and 13.9% year over year, respectively.
Balance-Sheet Data
CHRW exited the second quarter with cash and cash equivalents of $113.16 million compared with $121.84 million at the end of prior quarter. Long-term debt was $1.421 billion compared with $1.420 billion at the end of prior quarter.
CHRW generated $166.4 million of cash from operations in the second quarter. Capital expenditures totaled $19.3 million in the reported quarter.
In the second quarter of 2024, CHRW returned $76.4 million of cash to shareholders which includes $72.7 million in the form of cash dividends and $3.7 million through share repurchases.
2024 Outlook
Capital expenditures for 2024 are expected to be toward the lower end of the previously provided range of $85 million to $95 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 10.14% due to these changes.
VGM Scores
Currently, C.H. Robinson has an average Growth Score of C, a grade with the same score on the momentum front. 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise C.H. Robinson has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.