C.H. Robinson Worldwide, Inc. (CHRW) fourth-quarter 2023 earnings per share (EPS) of 50 cents missed the Zacks Consensus Estimate of 80 cents and declined year over year. Total revenues of $4,221.9 million lagged the Zacks Consensus Estimate of $4,352.1 million and declined 16.7% year over year owing to lower pricing in the company’s ocean and truckload services.Operating expenses declined 15.4% year over year to $511.2 million.Adjusted gross profits fell 19.5% year over year to $618.6 million, owing to low ...

Key TakeawaysC.H. Robinson shares traded sharply lower Thursday morning after the logistics giant fell short of analysts' fourth-quarter earnings and sales estimates.The company's top line came under pressure from waning freight volumes and excess capacity, which suppressed transportation rates.The C.H. Robinson share price may find chart support from the November swing low around $80. C.H. Robinson Worldwide, Inc. Source: TradingView.com.Shares in logistics giant C.H. Robinson Worldwide (CHRW) fell shar ...

Financial Data and Key Metrics Changes - The fourth quarter total revenues were $4.2 billion, with adjusted gross profit (AGP) of $618.6 million, down 20% year-over-year, driven by a 24% decline in North American Surface Transportation (NAST) and a 14% decline in Global Forwarding [37][41] - Q4 adjusted earnings per share (EPS) was $0.50, excluding one-time tax expenses and foreign currency losses [47] - Q4 cash flow generated by operations was $47 million, a significant decline from $773 million in Q4 of 2022, primarily due to changes in net operating working capital [48] Business Line Data and Key Metrics Changes - In the NAST truckload business, Q4 volume declined approximately 1.5% year-over-year and 3.5% sequentially, with AGP per load decreasing by 29.5% year-over-year [14][15] - The LTL business saw Q4 shipments down 0.5% year-over-year and 3.5% sequentially, with AGP per order declining 8.5% year-over-year [17] - Global Forwarding's ocean forwarding AGP declined by 17.2% year-over-year, driven by a 20.5% decrease in AGP per shipment, partially offset by a 4% increase in shipments [19] Market Data and Key Metrics Changes - The Cass Freight Shipment Index showed a sequential decline of 4.3% in Q4 2023, with the company's truckload and LTL shipments declining less at 3.5% [9] - The average Q4 headcount was down 13.3% year-over-year, reflecting reductions across all segments [38] Company Strategy and Development Direction - The company aims to focus on profitable growth in its four core modes: North American truckload, LTL, and global ocean and air, while improving synergies across its service portfolio [57][58] - There is a commitment to enhance revenue management practices and leverage technology, including Generative AI, to optimize operations and improve customer experience [26][35] Management's Comments on Operating Environment and Future Outlook - Management does not foresee an immediate upturn in global freight volumes, with expectations of continued soft market conditions in the first quarter of 2024 [22] - The company is focused on maintaining a durable cost structure that decouples volume growth from headcount growth, preparing for a market rebound [31][41] Other Important Information - The company achieved a 17% improvement in NAST shipments per person per day in Q4, exceeding its 15% target [23] - The effective tax rate for Q4 was 19.5%, with expectations for 2024 to be in the range of 17% to 19% [46] Q&A Session Summary Question: Context around pivoting to the spot market - Management indicated that the pivot to the spot market was opportunistic, driven by the competitive environment and the need to capture profitable demand [62][64] Question: Impact of January's winter storms on business - Management noted that January's cost increases were primarily due to weather-related capacity pressures, which are expected to normalize [68] Question: Observations on the bid environment and capacity exits - The bid environment is varied, with customers seeking resilient pricing, while capacity exits are beginning to show normal behavior, which may impact pricing in the future [85][86] Question: Focus on core businesses and potential simplification - The focus remains on truckload, LTL, ocean, and air, with ongoing evaluations of the entire company to maximize growth in these areas [90][91] Question: Synergies across service lines - Management is exploring how many customers use multiple service lines and the potential revenue synergy opportunities that could arise from this [94]

C.H. Robinson Worldwide (CHRW) reported $4.22 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 16.7%. EPS of $0.50 for the same period compares to $1.03 a year ago.The reported revenue represents a surprise of -2.99% over the Zacks Consensus Estimate of $4.35 billion. With the consensus EPS estimate being $0.80, the EPS surprise was -37.50%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations ...

Financial Performance - Total Revenues decreased by 16.7% year-over-year to $42 billion in Q4 2023[11] - Adjusted Gross Profits decreased by 19.5% year-over-year to $619 million in Q4 2023[11] - Income from Operations decreased by 34.5% year-over-year to $107 million in Q4 2023[11] - Net Income per Share decreased by 67.5% year-over-year to $026, with adjusted net income per share at $050[11] Segment Results - NAST (North American Surface Transportation) Adjusted Gross Profits decreased by 24.3% year-over-year to $3802 million in Q4 2023[25,70] - Truckload Adjusted Gross Profit decreased by 30.8% year-over-year to $2231 million in Q4 2023[25] - LTL (Less than Truckload) Adjusted Gross Profit decreased by 90% year-over-year to $1348 million in Q4 2023[25] - Global Forwarding Adjusted Gross Profits decreased by 140% year-over-year to $1623 million in Q4 2023[34,49] - Ocean Adjusted Gross Profit decreased by 172% year-over-year to $995 million, while shipments increased by 40%[33,34] - Air Adjusted Gross Profit decreased by 115% year-over-year to $279 million[34] Truckload Market Dynamics - Truckload volume decreased by 15% year-over-year in Q4[14,25] - Truckload price per mile decreased by 135% year-over-year in Q4[14] - Truckload cost per mile decreased by 105% year-over-year in Q4[14] Strategic Focus - The company aims to drive focus on profitable growth in core modes: North American truckload and LTL, and global ocean and air[3] - The company is focused on continuing to remove waste and manual touches from processes and ensuring readiness for the eventual freight market rebound[10] - The company is streamlining and automating processes to drive profitable growth[61]

C.H. Robinson Worldwide (CHRW) came out with quarterly earnings of $0.50 per share, missing the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -37.50%. A quarter ago, it was expected that this trucking company would post earnings of $0.82 per share when it actually produced earnings of $0.84, delivering a surprise of 2.44%.Over the last four quart ...

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW), a leading global provider of logistics solutions, services and technology, today announced that Michael Castagnetto has been promoted to President of North American Surface Transportation (“NAST”), effective immediately. Michael succeeds Mac Pinkerton, who is transitioning from his current role at C.H. Robinson. “Michael is a strong and strategic leader, and we are confident he will ensure that NAST cont ...

In its upcoming report, C.H. Robinson Worldwide (CHRW) is predicted by Wall Street analysts to post quarterly earnings of $0.80 per share, reflecting a decline of 22.3% compared to the same period last year. Revenues are forecasted to be $4.35 billion, representing a year-over-year decrease of 14.1%.The consensus EPS estimate for the quarter has undergone a downward revision of 2.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed ...

Indeed, 2024 has effectively ushered in a topsy-turvy period for global supply chains. Major Panama and Suez Canal disruptions and escalating geopolitical tensions reshape decades-old trade routes. In particular, retailers are feeling the heat of these major upheavals, especially with the continuing attacks in the Red Sea. Those impact Suez Canal accessibility, a critical route for East Coast U.S. and European markets. Amidst these challenges, businesses are forced to adapt. This leads to a growing focus on ...

C.H. Robinson Worldwide (CHRW) is scheduled to report fourth-quarter 2023 results on Jan 31, after market close.C.H. Robinson has underperformed the Zacks Consensus Estimate in two of the preceding four quarters, met once and beat in the remaining occasion, the average miss being 6.06%.Let’s see how things have shaped up for C.H. Robinson this earnings season.Q4 ExpectationsThe Zacks Consensus Estimate for C.H. Robinson’s fourth-quarter 2023 revenues is pegged at $4.37 billion, indicating a 13.7% decline fr ...