Yahoo Finance Why Is C.H. Robinson (CHRW) Down 3% Since Last Earnings Report?
A month has gone by since the last earnings report for C.H. Robinson Worldwide (CHRW). Shares have lost about 3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is C.H. Robinson due for a breakout? 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.
Earnings Miss at C.H. Robinson in Q4
C.H. Robinson reported disappointing fourth-quarter 2022 results wherein both earnings and revenues missed the Zacks Consensus Estimate.
Quarterly earnings of $1.03 per share missed the Zacks Consensus Estimate of $1.35 and declined 40.8% year over year. Total revenues of $5066.8 million lagged the Zacks Consensus Estimate of $5601.8 million and declined 22.1% to $5.1 billion, driven by lower pricing and volume across most of our services.
Operating expenses grew 6.2% year over year to $604.1 million. Adjusted gross profitsdecreased 10.3% to $768.2 million, owing to lower adjusted gross profit per transaction in ocean and air.
Segmental Results
At North American Surface Transportation, total revenues were $3,563.07million (down 8.5% year over year) in the fourth quarter. Segmental revenues were hurt by lower truckload pricing and volume. Adjusted gross profit at the segment ascended 5.7%.
Total revenues at Global Forwarding were $1,013.30million, down 52.7% year over year. Results were weighed down by lower pricing and volumes in CHRW’s ocean and air services, reflecting softening market demand. Adjusted gross profit at the segmentfell 39% year over year.
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) increased 6.2% to $490.44million.
Below we present the division of adjusted profit among the service lines (on an enterprise basis).
Transportation: The unit (comprising Truckload, Intermodal, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $741.95million in the quarter under consideration, down 10.9% from the prior-year figure.
Adjusted gross profit at the Truckload sub-group climbed 2.2% year over year to $346.84million. LTL’s adjusted gross profit increased 7.1% year over year to $149.37million. Customs-adjusted gross profit fell 3.3% to $24.49million. Other logistics services’ adjusted gross profit rose 31.2% to $68.90million.
Adjusted gross profit at the Ocean transportation segment fell 42.7% year over year to $120.29million. The same at the air transportation sub-group fell 51.3% to $32.03million.
Balance-Sheet Data
CHRW exited the fourth quarter with cash and cash equivalents of $217.48 million compared with $187.53 million at the end of September 2022. Long-term debt was $920.04 million compared with $1.42 billion at the end of September 2022.
CHRW generated $773.4 million of cash from operations in the fourth quarter. Capital expenditures came in at $27.8 million in the reported quarter.
In the fourth quarter of 2022, the companyrepurchased shares worth $438.1 million and paid $69.1 million in cash dividends.
2023 Outlook
Capital expenditures for 2023 are anticipated between $90 million and $100 million. Full-year effective tax rate is anticipated between 19% to 21%.
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?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -14.47% due to these changes.
VGM Scores
At this time, C.H. Robinson has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. 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. Notably, C.H. Robinson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
