Core Viewpoint - C.H. Robinson Worldwide reported mixed fourth-quarter 2024 results, with earnings exceeding estimates but revenues falling short, indicating potential challenges in the market [2][3]. Financial Performance - Quarterly earnings per share were $1.21, surpassing the Zacks Consensus Estimate of $1.12, and reflecting a 142% year-over-year improvement [2]. - Total revenues amounted to $4.18 billion, missing the Zacks Consensus Estimate of $4.47 billion, and decreased by 0.9% year over year due to lower volume and pricing in truckload services, partially offset by higher pricing in ocean services [3]. - Adjusted gross profits increased by 10.7% year over year to $684.6 million, driven by higher adjusted gross profit per transaction in truckload and ocean services [3]. Segmental Results - North American Surface Transportation revenues were $2.80 billion, down 6.6% year over year, attributed to lower truckload volume and pricing due to an oversupply of truckload capacity [5]. - Global Forwarding revenues grew by 24.7% year over year to $883.96 million, supported by higher pricing in ocean services, with adjusted gross profits rising by 25.6% to $203.8 million [6]. - Revenues from other sources decreased by 2.8% year over year to $497.98 million [6]. Operating Metrics - Adjusted operating margin improved to 26.8%, an increase of 940 basis points from the previous year, while operating expenses decreased by 2.0% to $500.8 million [4]. - The transportation unit delivered an adjusted gross profit of $684.62 million, up 10.7% from the prior year, with notable growth in ocean (28.2%) and air (44.8%) services [7]. Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the fourth quarter were $145.76 million, up from $131.70 million in the prior quarter, while long-term debt decreased to $921.85 million from $1.41 billion [8]. - Cash generated from operations was $267.9 million, significantly higher than $47.3 million in the prior-year quarter, driven by an increase in net income and changes in net operating working capital [9]. Shareholder Returns and Capital Expenditures - The company returned $82.8 million to shareholders, including $74.5 million in dividends and $8.3 million in share repurchases, with capital expenditures totaling $15.2 million in the reported quarter [10]. - Expected capital expenditures for 2025 are projected to be between $75 million and $85 million [11]. Market Outlook - Estimates for C.H. Robinson have trended upward over the past month, indicating a positive outlook for the stock [12][14]. - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [14].

Financial Performance - Total revenues for 2024 reached $17,724,956, a 0.73% increase from $17,596,443 in 2023[260] - Net income for 2024 was $465,690, representing a 43.2% increase compared to $325,129 in 2023[260] - Basic net income per share increased to $3.89 in 2024 from $2.74 in 2023, marking a 41.9% rise[260] - The company reported a comprehensive income of $436,234 in 2024, compared to $333,043 in 2023, reflecting a 30.9% increase[260] - Total current assets rose to $2,969,603 in 2024, up from $2,880,694 in 2023, reflecting a 3.1% increase[259] - Total liabilities decreased to $3,575,875 in 2024, down 6.0% from $3,806,583 in 2023[259] - Long-term debt significantly reduced to $921,857 in 2024, a decrease of 35.1% from $1,420,487 in 2023[259] - Total stockholders' investment increased to $1,722,051 in 2024, up from $1,418,697 in 2023, indicating a 21.4% growth[259] Operational Highlights - Transportation services accounted for approximately 95% of adjusted gross profits in 2024 and 2023, and 97% in 2022[34] - Adjusted gross profits by transportation mode for 2024 totaled $2,633,810,000, with Truckload contributing $1,072,691,000, LTL $572,169,000, Ocean $519,970,000, and Air $135,901,000[35] - Sourcing services accounted for approximately 5% of adjusted gross profits in 2024 and 2023, and 3% in 2022[37] - In 2024, the company served 83,000 customers worldwide, with the largest customer accounting for approximately 2% of consolidated total revenues[38] - The company managed approximately 37 million shipments for 83,000 customers in 2024, utilizing over 450,000 contract carriers[44] - The company had over 450,000 transportation providers on its platform, ensuring a diverse and reliable service network[53] - C.H. Robinson serves 83,000 customers across various industries and has 450,000 contract carriers on its platform[67] Employee and Leadership Insights - The total employee count is 13,781, with 11,565 network employees and 2,216 shared services employees[70] - The employee turnover ratio for 2024 is 23%, with a voluntary turnover rate of 13%, lower than industry peers[73] - 78% of people leaders have been with C.H. Robinson for more than five years, indicating strong leadership retention[76] - The 2024 employee engagement survey yielded a 70% engagement score, highlighting strengths in manager capabilities and relationships[74] - C.H. Robinson's equity compensation program grants equity to about 10% of employees, promoting an ownership mentality[83] - Generative AI is enhancing employee capabilities and is used in the hiring process to identify innovative candidates[72] - Damon Lee was appointed Chief Financial Officer in June 2024, previously serving as CFO of GE Commercial Engines and Services from August 2022 to May 2024[94] - Arun Rajan was named Chief Strategy and Innovation Officer in June 2024, having previously held the position of Chief Operating Officer at C.H. Robinson from October 2022 to June 2024[95] Risk Factors - The company has faced risks related to economic conditions, including uncertain consumer demand and competition within the global logistics industry, which could adversely impact profitability and long-term growth targets[99] - Increased carrier prices may lead to decreased adjusted gross profit margins, with potential losses if contracted rates are below market rates[103] - Fluctuating fuel prices can impact adjusted gross profit margins, as fuel costs are often passed through to customers[104] - The company may struggle to identify or complete suitable acquisitions, which could lead to volatility in financial results[108] - The supply and price of fresh produce are affected by uncontrollable factors such as weather, which could materially impact operating results[109] - Cybersecurity risks are heightened due to reliance on technology and third-party systems, potentially leading to significant business interruptions[111] - The interconnected nature of the supply chain makes the company an attractive target for cyberattacks, which could result in operational difficulties and reputational damage[112] - A failure to prevent cyberattacks could adversely affect financial condition, results of operations, and growth prospects[113] - The company is exposed to operational, financial, and data privacy risks due to international operations, including changes in tariffs and trade restrictions[114] - The company may face increased costs and operational challenges due to evolving global laws regarding data privacy and personal information processing[114] - The company is integrating machine learning and AI technologies into its operations, which may present new risks and increase operating expenses[117] - The company has a significant reliance on foreign currency, which could lead to currency exchange gains or losses affecting its financial results[115] - The company is subject to various regulatory changes that could impact its tax liabilities, including the OECD's minimum 15% tax rate for multinational enterprises[125] - The company faces risks related to climate change, which could disrupt operations and negatively affect financial results[119] Financial Position and Debt Management - As of December 31, 2024, the company had $145.8 million in cash and cash equivalents, primarily in demand accounts[230] - The company has a $1 billion revolving credit facility, with $9 million outstanding as of December 31, 2024[231] - The company issued $325 million in Senior Notes, with fixed rates of 4.26% and 4.6%, due in 2028 and 2033 respectively[232] - The fair value of the Senior Notes was approximately $293.1 million as of December 31, 2024[232] - The company has a Receivables Securitization Facility with $446.8 million outstanding as of December 31, 2024[234] - A hypothetical 10% weakening of the U.S. Dollar against key currencies would decrease net income by approximately $7.5 million[238] - The company maintained effective internal control over financial reporting as of December 31, 2024[251] - The company does not use derivative financial instruments to manage interest rate risk[235] - The fair value of the Senior Notes, excluding debt discounts, was approximately $583.3 million as of December 31, 2024[233] - The total debt as of December 31, 2024, was $1,377,649 thousand, down from $1,580,487 thousand in 2023, representing a reduction of 12.8%[304] - The average interest rate on the revolving credit facility decreased from 6.45% in 2023 to 5.58% in 2024, indicating a reduction of 1.87 percentage points[304] - The company has a senior unsecured revolving credit facility with total availability of $1 billion, maturing on November 19, 2027[305] Asset Management - The company recognized depreciation expense of $35,967 in 2024, down from $39,569 in 2023, a decrease of 9.9%[285] - The net property and equipment as of December 31, 2024, was $130,907, a decrease from $144,718 in 2023, reflecting a decline of 9.5%[285] - The company recognized amortization expense for purchased and internally developed software of $49,032 thousand in 2024, up from $38,803 thousand in 2023, and $31,229 thousand in 2022, indicating a year-over-year increase of 26.0% from 2023 to 2024[287] - As of December 31, 2024, the net software value was $99,403 thousand, a slight decrease from $102,529 thousand in 2023, reflecting a decline of 3.1%[287] - The company recorded a pre-tax loss of $44.5 million on the disposal group related to the Europe Surface Transportation business, classified as held for sale as of December 31, 2024[301] - The company’s identifiable intangible assets totaled $86,880 thousand as of December 31, 2024, down from $102,099 thousand in 2023, reflecting a decrease of 14.8%[299] - The company performed a Step Zero Analysis for goodwill and found no indicators suggesting impairment, thus no Step One Analysis was necessary for any reporting units[298] - The company’s net intangible assets for the Europe Surface Transportation disposal group were valued at $2.7 million as of December 31, 2024[299] Community Engagement - In 2024, C.H. Robinson contributed over $4 million to approximately 1,125 charities and employees volunteered more than 10,000 hours[84]

Core Insights - The article compares C.H. Robinson Worldwide (CHRW) and Expeditors International (EXPD) to determine which stock offers better value for investors [1] Group 1: Zacks Rank and Analyst Outlook - C.H. Robinson Worldwide has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to Expeditors International, which has a Zacks Rank of 3 (Hold) [3] Group 2: Valuation Metrics - CHRW has a forward P/E ratio of 20.19, while EXPD has a forward P/E of 21.32, suggesting that CHRW may be undervalued relative to EXPD [5] - The PEG ratio for CHRW is 1.13, indicating a better valuation considering expected earnings growth, whereas EXPD has a PEG ratio of 3.81 [5] - CHRW's P/B ratio is 6.68, compared to EXPD's P/B of 6.69, showing similar valuations based on book value [6] Group 3: Value Grades - Based on various valuation metrics, CHRW holds a Value grade of B, while EXPD has a Value grade of D, indicating that CHRW is the superior value option at this time [6]

Group 1 - The article discusses the upgrade of C.H. Robinson Worldwide's rating from sell to hold due to improvements in the macro environment [1] - The author emphasizes a fundamentals-based approach to value investing, focusing on companies with long-term durability and robust balance sheets [1] - There is a critique of the misconception that low multiple stocks are inherently cheap, highlighting the importance of valuation in investment decisions [1] Group 2 - The article does not contain any disclosures related to stock positions or business relationships with the companies mentioned [2] - It clarifies that past performance is not indicative of future results and does not provide specific investment recommendations [3]

Company Overview - C.H. Robinson Worldwide Inc. is a third-party logistics company based in Minnesota, providing freight transportation services and logistic solutions across various industries [11] - The company operates as an asset-light transportation provider, offering services ranging from specific shipment commitments to comprehensive integrated relationships [11] Investment Ratings - C.H. Robinson is currently rated as 2 (Buy) on the Zacks Rank, indicating a favorable investment outlook [11] - The company has a VGM Score of B, reflecting a combination of value, growth, and momentum characteristics [11][12] Financial Metrics - C.H. Robinson has a Value Style Score of B, supported by attractive valuation metrics, including a forward P/E ratio of 20.75 [12] - Over the last 60 days, six analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.06 to $4.84 per share [12] - The company has demonstrated an average earnings surprise of 21.7%, indicating strong performance relative to expectations [12]

Core Viewpoint - C.H. Robinson Worldwide, Inc. (CHRW) reported mixed fourth-quarter 2024 results, with earnings exceeding expectations while revenues fell short [1][2]. Financial Performance - Quarterly earnings per share (EPS) reached $1.21, surpassing the Zacks Consensus Estimate of $1.12 and reflecting a 142% year-over-year increase [1]. - Total revenues amounted to $4.18 billion, missing the Zacks Consensus Estimate of $4.47 billion and showing a 0.9% decline year over year due to lower truckload volume and pricing, partially offset by higher ocean services pricing [2]. - Adjusted gross profits increased by 10.7% year over year to $684.6 million, driven by higher adjusted gross profit per transaction in truckload and ocean services [2]. Segmental Results - North American Surface Transportation reported total revenues of $2.80 billion, down 6.6% year over year, attributed to lower truckload volume and pricing, with adjusted gross profits growing 6.2% to $403.8 million [4]. - Global Forwarding's total revenues rose 24.7% year over year to $883.96 million, benefiting from higher pricing in ocean services, with adjusted gross profits increasing 25.6% to $203.8 million [5]. - Revenues from other sources decreased 2.8% year over year to $497.98 million, falling short of expectations [6]. Operating Metrics - Adjusted operating margin improved to 26.8%, a 940 basis point increase from the previous year, while operating expenses decreased by 2% year over year to $500.8 million [3]. - The transportation unit delivered an adjusted gross profit of $684.62 million, up 10.7% from the prior year, with varying growth rates across service lines [7]. Cash Flow and Shareholder Returns - CHRW generated $267.9 million in cash from operations in the fourth quarter, significantly higher than $47.3 million in the prior-year quarter, driven by increased net income and changes in net operating working capital [9]. - The company returned $82.8 million to shareholders, including $74.5 million in cash dividends and $8.3 million through share repurchases [10]. Balance Sheet - At the end of the fourth quarter, cash and cash equivalents stood at $145.76 million, up from $131.70 million in the prior quarter, while long-term debt decreased to $921.85 million from $1.41 billion [8]. Outlook - Capital expenditures for 2025 are projected to be between $75 million and $85 million [11].

分组1 - C.H. Robinson Worldwide (CHRW) reported quarterly earnings of $1.21 per share, exceeding the Zacks Consensus Estimate of $1.12 per share, and showing a significant increase from $0.50 per share a year ago, representing an earnings surprise of 8.04% [1][2] - The company posted revenues of $4.18 billion for the quarter ended December 2024, which was 6.42% below the Zacks Consensus Estimate and a slight decrease from $4.22 billion in the same quarter last year [2] - C.H. Robinson has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates two times during the same period [2][6] 分组2 - The stock has gained approximately 6.3% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $4.51 billion, while for the current fiscal year, the estimate is $4.82 on revenues of $18.38 billion [7] - The Transportation - Services industry, to which C.H. Robinson belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges ahead [8]

Q4 2024 Earnings Presentation 2024 INVESTOR DAY January 29, 2025 Safe Harbor Statement Except for the historical information contained herein, the matters set forth in this presentation are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including ...

Full-Year Key Metrics: C.H. Robinson 14701 Charlson Rd. Eden Prairie, MN 55347 www.chrobinson.com FOR INQUIRIES, CONTACT: Chuck Ives, Senior Director of Investor Relations Email: chuck.ives@chrobinson.com FOR IMMEDIATE RELEASE C.H. Robinson Reports 2024 Fourth Quarter Results Eden Prairie, MN, January 29, 2025 - C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (Nasdaq: CHRW) today reported financial results for the quarter ended December 31, 2024. Fourth Quarter Highlights: Adjusted operating margin, adjuste ...

Earnings Report and Estimates - C H Robinson (CHRW) is scheduled to report fourth-quarter 2024 results on Jan 29, after market close [1] - The Zacks Consensus Estimate for CHRW's fourth-quarter 2024 earnings per share has been revised upward by 1 8% in the past 60 days to $1 12, implying a 124% surge from the year-ago actuals [2] - The Zacks Consensus Estimate for revenues is pegged at $4 47 billion, indicating a 5 9% increase from fourth-quarter 2023 actuals [2] - CHRW has surpassed the Zacks Consensus Estimate in three of the past four quarters, with an average beat of 10 3% [3] Revenue and Segment Performance - Revenues from the service line transportation segment are estimated at $4 17 billion, up 6% from the fourth-quarter 2023 actuals [4] - Revenues from the sourcing segment are forecasted at $380 8 million [4] - North American Surface Transportation's fourth-quarter revenues are estimated at $3 billion, a 0 3% increase from the year-ago reported figure [5] - Revenues from the Global Forwarding segment are anticipated to be $878 million, implying a 23 3% increase from the year-ago reported figure [5] Operational Efficiency and Earnings Potential - CHRW's operational efficiency, driven by robust cost-cutting initiatives, is expected to bolster the company's bottom-line performance [6] - The company has an Earnings ESP of +5 71%, with the Most Accurate Estimate pegged at $1 18, 6 cents above the Zacks Consensus Estimate [8] - CHRW currently holds a Zacks Rank 2, increasing the odds of an earnings beat [8] Other Transportation Stocks - JetBlue Airways (JBLU) has an Earnings ESP of +5 02% and a Zacks Rank 3, with fourth-quarter 2024 results scheduled for release on Jan 28 [11] - JBLU has surpassed the Zacks Consensus Estimate in each of the preceding four quarters, with an average beat of 62 8% [11] - Southwest Airlines (LUV) has an Earnings ESP of +6 78% and a Zacks Rank 2, with fourth-quarter results set for release on Jan 30 [12] - The Zacks Consensus Estimate for LUV's fourth-quarter 2024 earnings has moved north by 32 2% in the past 90 days [12] - LUV's earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters, delivering an average surprise of 111 6% [12]