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]

Financial Performance - Total revenues decreased by 0.9% year-over-year to $4.2 billion in Q4 2024 [10] - Adjusted gross profits increased by 10.7% year-over-year to $685 million in Q4 2024 [10] - Income from operations increased by 71.1% year-over-year to $184 million in Q4 2024 [10] - Net income per share increased by 369.2% year-over-year to $1.22 in Q4 2024 [10] - Adjusted income from operations increased by 79% year-over-year in Q4 [5] Segment Results - North American Surface Transportation (NAST) adjusted gross profits increased by 6.2% year-over-year in Q4 2024 [13] - Global Forwarding (GF) adjusted gross profits increased by 25.6% year-over-year in Q4 2024 [13] - All Other & Corporate adjusted gross profits increased by 1.2% year-over-year in Q4 2024 [13] - NAST truckload adjusted gross profit increased 9.5% year-over-year [17] - Ocean volume grew 3.5% year-over-year & air tonnage grew 15.5% year-over-year in Global Forwarding [16] Strategic Initiatives - The company is focused on deploying a new operating model to improve service, gain market share, streamline processes, and optimize costs [11]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Fourth Quarter 2024 Highlights](index=1&type=section&id=Fourth%20Quarter%20Highlights) Q4 2024 profitability surged, with gross profits up **10.4%** to **$672.9 million** and income from operations increasing **71.1%** Q4 2024 Key Financial Metrics | Metric | Q4 2024 Value | YoY Change | | :--- | :--- | :--- | | Gross Profits | $672.9 million | +10.4% | | Income from Operations | $183.8 million | +71.1% | | Adjusted Operating Margin | 26.8% | +940 bps | | Diluted EPS | $1.22 | +369.2% | | Adjusted EPS | $1.21 | +142.0% | | Cash Generated by Operations | $267.9 million | +$220.6 million | - The significant increase in profitability was attributed to **disciplined execution**, a focus on **quality of volume**, and improvements in **gross profit margin**, **productivity improvements**, and **operating leverage**[5](index=5&type=chunk) [Full-Year 2024 Key Metrics](index=1&type=section&id=Full-Year%20Key%20Metrics) Full-year 2024 gross profits increased **5.8%** to **$2.7 billion**, income from operations rose **30.0%**, but cash from operations declined Full-Year 2024 Key Financial Metrics | Metric | Full-Year 2024 Value | YoY Change | | :--- | :--- | :--- | | Gross Profits | $2.7 billion | +5.8% | | Income from Operations | $669.1 million | +30.0% | | Adjusted Operating Margin | 24.2% | +440 bps | | Diluted EPS | $3.86 | +41.9% | | Adjusted EPS | $4.51 | +36.7% | | Cash Generated by Operations | $509.1 million | -$222.9 million | - The decrease in cash from operations was attributed to an increase in **net operating working capital**, which was related to **higher ocean rates**[5](index=5&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) [CEO's Perspective](index=2&type=section&id=CEO's%20Perspective) CEO Bozeman attributed Q4 financial improvement to the **new operating model**, driving **disciplined execution** and **productivity gains** across segments - The **new Robinson operating model** is credited with enabling **disciplined execution**, leading to higher **quality of volume**, greater **productivity improvements**, and expanded **profit margins**[6](index=6&type=chunk) - In the NAST segment, **dynamic costing/pricing tools** and **revenue management practices** improved **gross profit margins** both year-over-year and sequentially, despite rising transportation costs[6](index=6&type=chunk) - The Global Forwarding business achieved **over 15% productivity improvement** for the full year by **decoupling headcount growth from volume growth**, reducing average headcount by **more than 10%** while growing ocean and air shipments[7](index=7&type=chunk) - Over **2023** and **2024**, the company delivered compounded **productivity growth of 30% or more** in both Global Forwarding and NAST, which are viewed as **evergreen improvements**[7](index=7&type=chunk) [Consolidated Financial Performance](index=4&type=section&id=Consolidated%20Financial%20Performance) [Fourth Quarter 2024 Performance Summary](index=4&type=section&id=Summary%20of%20Fourth%20Quarter%20of%202024%20Results) Q4 2024 revenues decreased **0.9%** to **$4.2 billion**, but adjusted gross profits rose **10.7%**, leading to a **71.1%** increase in income from operations Q4 2024 vs Q4 2023 Financial Results | Metric | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $4.2 billion | $4.2 billion | -0.9% | | Adjusted Gross Profits | $684.6 million | $618.6 million | +10.7% | | Operating Expenses | $500.8 million | $511.0 million | -2.0% | | Income from Operations | $183.8 million | $107.4 million | +71.1% | | Net Income | $149.3 million | $31.0 million | +382.1% | | Diluted EPS | $1.22 | $0.26 | +369.2% | | Adjusted EPS | $1.21 | $0.50 | +142.0% | - Personnel expenses decreased by **2.1%** to **$354.4 million**, primarily due to **cost optimization** and **productivity improvements**, with average employee headcount declining by **9.5%**[10](index=10&type=chunk) - The effective tax rate dropped to **11.4%** from **55.3%** in the prior year's quarter, driven by **non-recurring discrete items**, **higher U.S. tax credits**, and **increased tax benefits from stock-based compensation**[10](index=10&type=chunk) [Full-Year 2024 Performance Summary](index=5&type=section&id=Summary%20of%202024%20Year-to-Date%20Results) Full-year 2024 revenues increased **0.7%** to **$17.7 billion**, adjusted gross profits grew **6.2%**, and income from operations rose **30.0%** Full-Year 2024 vs 2023 Financial Results | Metric | Full-Year 2024 | Full-Year 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $17.7 billion | $17.6 billion | +0.7% | | Adjusted Gross Profits | $2.8 billion | $2.6 billion | +6.2% | | Operating Expenses | $2.1 billion | $2.1 billion | +0.3% | | Income from Operations | $669.1 million | $514.6 million | +30.0% | | Net Income | $465.7 million | $325.1 million | +43.2% | | Diluted EPS | $3.86 | $2.72 | +41.9% | | Adjusted EPS | $4.51 | $3.30 | +36.7% | - Personnel expenses decreased by **0.6%** due to **cost optimization**, with average employee headcount declining by **10.3%**[12](index=12&type=chunk) - Other SG&A expenses increased by **2.5%**, primarily due to a **$44.5 million** **loss on the planned divestiture of the Europe Surface Transportation business**[12](index=12&type=chunk) [Segment Performance](index=6&type=section&id=Segment%20Performance) [North American Surface Transportation (NAST)](index=6&type=section&id=North%20American%20Surface%20Transportation%20(NAST)) Q4 2024 NAST revenues decreased **6.6%** to **$2.8 billion**, but adjusted gross profits rose **6.2%**, leading to a **38.1%** increase in income from operations NAST Q4 2024 Financial Results (in thousands) | Metric | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $2,802,700 | $3,000,650 | -6.6% | | Adjusted Gross Profits | $403,764 | $380,157 | +6.2% | | Income from Operations | $132,528 | $95,958 | +38.1% | - Truckload adjusted gross profits increased **9.5%** due to a **17.0%** increase in adjusted gross profit **per shipment**, which offset a **6.5%** decrease in truckload shipments[13](index=13&type=chunk) - LTL adjusted gross profits increased **4.5%**, driven by a **2.5%** increase in volume and a **2.0%** increase in adjusted gross profit **per order**[13](index=13&type=chunk) [Global Forwarding](index=7&type=section&id=Global%20Forwarding) Q4 2024 Global Forwarding revenues increased **24.7%** to **$884.0 million**, adjusted gross profits grew **25.6%**, leading to a **129.6%** surge in income from operations Global Forwarding Q4 2024 Financial Results (in thousands) | Metric | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $883,968 | $708,814 | +24.7% | | Adjusted Gross Profits | $203,801 | $162,322 | +25.6% | | Income from Operations | $51,827 | $22,576 | +129.6% | - Ocean adjusted gross profits increased **27.7%**, driven by a **23.5%** increase in adjusted gross profit **per shipment** and a **3.5%** increase in shipments[14](index=14&type=chunk) - Air adjusted gross profits surged **45.4%**, driven by a **26.0%** increase in adjusted gross profit **per metric ton** and a **15.5%** increase in **metric tons** shipped[14](index=14&type=chunk) [All Other and Corporate](index=8&type=section&id=All%20Other%20and%20Corporate) Q4 2024 All Other and Corporate saw mixed results, with Robinson Fresh adjusted gross profits up **15.7%**, while Managed Solutions and Other Surface Transportation declined All Other and Corporate Adjusted Gross Profits Q4 2024 (in thousands) | Division | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Robinson Fresh | $35,983 | $31,093 | +15.7% | | Managed Solutions | $28,133 | $28,846 | -2.5% | | Other Surface Transportation | $12,942 | $16,205 | -20.1% | - The increase in Robinson Fresh adjusted gross profits was due to an increase in **integrated supply chain solutions** for retail and foodservice customers[16](index=16&type=chunk) - The decrease in Other Surface Transportation was primarily due to a **19.4%** decrease in Europe truckload adjusted gross profits[16](index=16&type=chunk) [Financial Position and Cash Flow](index=8&type=section&id=Financial%20Position%20and%20Cash%20Flow) [Other Income Statement Items](index=8&type=section&id=Other%20Income%20Statement%20Items) Q4 2024 net interest and other expense decreased to **$15.4 million**, with the effective tax rate dropping to **11.4%** from **55.3%** - Interest expense decreased by **$2.8 million** versus Q4 **2023**, attributed to a **lower average debt balance** and **lower variable interest rates**[17](index=17&type=chunk) - The Q4 effective tax rate was **11.4%**, down from **55.3%** in the prior year. The company expects a full-year effective tax rate of **18% to 20%** for **2025**[18](index=18&type=chunk) [Cash Flow Generation and Capital Distribution](index=9&type=section&id=Cash%20Flow%20Generation%20and%20Capital%20Distribution) Q4 2024 cash from operations increased by **$220.6 million** to **$267.9 million**, and **$82.8 million** was returned to shareholders - Cash from operations increased by **$220.6 million** in Q4 **2024** compared to Q4 **2023**, driven by a **$118.3 million** increase in net income and an **$81.3 million** **positive change in net operating working capital**[19](index=19&type=chunk) - In Q4 **2024**, the company returned **$82.8 million** to shareholders, consisting of **$74.5 million** in dividends and **$8.3 million** in stock buybacks[20](index=20&type=chunk) - Capital expenditures for **2025** are projected to be in the range of **$75 million to $85 million**[20](index=20&type=chunk) [Financial Statements and Reconciliations](index=11&type=section&id=Financial%20Statements%20and%20Reconciliations) [Adjusted Gross Profit by Service Line](index=11&type=section&id=Adjusted%20Gross%20Profit%20by%20Service%20Line) Q4 2024 total adjusted gross profits increased **10.7%** to **$684.6 million**, driven by strong Air, Ocean, and Sourcing performance Adjusted Gross Profits by Service Line - Q4 2024 (in thousands) | Service Line | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Truckload | $261,527 | $243,839 | +7.3% | | LTL | $141,982 | $136,602 | +3.9% | | Ocean | $127,139 | $99,191 | +28.2% | | Air | $40,856 | $28,224 | +44.8% | | Customs | $26,467 | $23,730 | +11.5% | | Sourcing | $32,269 | $27,635 | +16.8% | | **Total** | **$684,623** | **$618,623** | **+10.7%** | [GAAP to Non-GAAP Reconciliation](index=12&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) The company reconciles GAAP to non-GAAP measures, adjusting Q4 2024 gross profit from **$672.9 million** to **$684.6 million** for restructuring and divestiture impacts - Adjusted gross profit is calculated by excluding the **amortization of internally developed software** from GAAP gross profit. In Q4 **2024**, this amortization was **$11.8 million**[27](index=27&type=chunk) - Adjusted operating margin for Q4 **2024** was **26.8%**, a **940 basis points** increase from **17.4%** in Q4 **2023**. Excluding restructuring and loss on divestiture, the margin was **26.9%**, a **1,020 basis points** increase[27](index=27&type=chunk) - For Q4 **2024**, adjustments to net income included pre-tax **restructuring costs** of **$13.2 million** and a pre-tax **gain on divestiture** of **$12.6 million**[28](index=28&type=chunk) [Condensed Consolidated Financial Statements](index=15&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Consolidated financial statements show Q4 net income up **382.1%** to **$149.3 million**, total assets at **$5.30 billion**, and full-year operating cash flow at **$509.1 million** [Statements of Income](index=15&type=section&id=Statements%20of%20Income) Condensed Consolidated Statements of Income (in thousands) | Metric | Q4 2024 | Q4 2023 | Full-Year 2024 | Full-Year 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $4,184,656 | $4,221,887 | $17,724,956 | $17,596,443 | | Income from Operations | $183,799 | $107,429 | $669,141 | $514,607 | | Net Income | $149,306 | $30,973 | $465,690 | $325,129 | | Diluted EPS | $1.22 | $0.26 | $3.86 | $2.72 | [Balance Sheets](index=18&type=section&id=Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $2,969,603 | $2,880,694 | | Total Assets | $5,297,926 | $5,225,280 | | Total Current Liabilities | $2,324,898 | $2,051,993 | | Total Liabilities | $3,575,875 | $3,806,583 | | Total Stockholders' Investment | $1,722,051 | $1,418,697 | [Statements of Cash Flow](index=19&type=section&id=Statements%20of%20Cash%20Flow) Condensed Consolidated Statements of Cash Flow (in thousands) | Metric | Twelve Months Ended Dec 31, 2024 | Twelve Months Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $509,084 | $731,946 | | Net Cash Used for Investing Activities | ($74,288) | ($82,787) | | Net Cash Used for Financing Activities | ($416,099) | ($717,833) | | Cash and Cash Equivalents, End of Period | $145,762 | $145,524 |

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]

Stock Performance - CHRW shares have gained 17.5% in the past six months, outperforming its industry and the S&P 500 [1] - The stock has shown an impressive run on the bourse this year [1] Investment Ratings - CHRW has a Zacks Rank 2 (Buy) and a VGM Score of B, indicating strong investment potential [4] - Stocks with a VGM Score of A or B combined with a Zacks Rank 1 or 2 offer the best investment opportunities [4] Earnings Estimates - The Zacks Consensus Estimate for Q1 2025 earnings has increased by 3% in the past 90 days [5] - The Zacks Consensus Estimate for 2025 earnings has risen by 5.8% in the past 90 days [5] Earnings Surprise History - CHRW has surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 10.3% [6] Earnings Growth Expectations - CHRW's Q1 2025 earnings are expected to grow 19.8% year over year [7] - CHRW's 2025 earnings are expected to grow 10.9% year over year [7] Shareholder Returns - CHRW has made uninterrupted dividend payments for over 25 years [8] - In the first nine months of 2024, CHRW returned $282.8 million to shareholders, including $218.9 million in dividends and $63.9 million in share repurchases [8] Operational Focus - CHRW is focused on cost-cutting measures and improving productivity to mitigate high expenses and weaker-than-expected demand [9] Peer Comparison - American Airlines (AAL) has a Zacks Rank 1 and an expected earnings growth rate of 16% for the current year [10][11] - AAL has an average earnings surprise beat of 124.4% and its shares have risen 16.4% in the past year [11] - United Airlines (UAL) has a Zacks Rank 2 and an expected earnings growth rate of 1.3% for the current year [10][11] - UAL has an average earnings surprise beat of 26.9% and its shares have surged 122.9% in the past year [12] Investment Potential - CHRW has performed well in the past year and has the potential to sustain its momentum in the future [13]

Core Viewpoint - The transportation sector is expected to perform well in 2025, driven by various positive factors including strong air-travel demand, e-commerce growth, and shareholder-friendly measures [4][14]. Group 1: Sector Performance - The transportation sector has declined by 4% compared to the S&P 500's rally of 25.3% year-to-date [2]. - The sector is diversified, including airlines, railroads, package delivery companies, and truckers, with most participants performing well due to tailwinds like solid air-travel demand and online e-commerce growth [14]. Group 2: Company Highlights - ZIM Integrated Shipping Services has a market capitalization of $2.20 billion and a Zacks Rank 1, with a consensus estimate for 2025 earnings improving by over 100% in the past 90 days [5][18]. - Wabtec Corporation has a market capitalization of $33.18 billion, a Zacks Rank 2, and an expected earnings growth rate of 12.7% for 2025, with a 4.1% improvement in earnings estimates over the past 90 days [6][20]. - C.H. Robinson has a market capitalization of $12.87 billion, a Zacks Rank 2, and an expected earnings growth rate of 11.1% for 2025, with a 5.6% improvement in earnings estimates over the past 90 days [7][21][13]. - The Greenbrier Companies has a market capitalization of $1.96 billion, a Zacks Rank 1, and an expected earnings growth rate of 6.7% for 2025, with an 11% improvement in earnings estimates over the past 90 days [11][19].

Industry Overview - The Zacks Transportation-Services industry is facing challenges such as inflation-induced elevated interest rates, supply-chain disruptions, and weak freight rates [1] - The Cass Freight Shipment Index declined by 0.7% year over year in November, indicating a deteriorating trend since January 2024 [1] - The industry has declined by 7.5% year to date, compared to a 27.8% appreciation of the S&P 500 Index [2] Company Performance - Matson, Inc. (MATX) has a market capitalization of $4.77 billion and a Zacks Rank 1, with expected earnings growth rates of 78.7% for Q4 2024 and 58.7% for the full year [9][10] - Expeditors International of Washington, Inc. (EXPD) has a market capitalization of $16.23 billion and a Zacks Rank 2, with expected earnings growth rates of 27.5% for Q4 2024 and 8.4% for the full year [11][12] - C.H. Robinson Worldwide, Inc. (CHRW) has a market capitalization of $12.87 billion and a Zacks Rank 2, with expected earnings growth rates of over 100% for Q4 2024 and 33.3% for the full year [13][15] Financial Strategies - Industry players are actively making dividend payments and repurchasing shares, indicating financial strength and confidence in business [5] - Expeditors announced a 5.8% increase in its quarterly dividend in May 2024, while Matson also announced a quarterly dividend increase in June [5]

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 [14]. Investment Ratings - C.H. Robinson is currently rated as a 2 (Buy) on the Zacks Rank, indicating a favorable investment outlook [15]. - The company has a VGM Score of A, reflecting strong performance across value, growth, and momentum metrics [15]. Value Metrics - C.H. Robinson has a Value Style Score of B, supported by attractive valuation metrics, including a forward P/E ratio of 25.05, which may appeal to value investors [15]. Earnings Estimates - In the last 60 days, nine analysts have revised their earnings estimates upwards for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.24 to $4.40 per share [15]. - The company has demonstrated an average earnings surprise of 10.3%, indicating a history of exceeding earnings expectations [15]. Conclusion - With a solid Zacks Rank and top-tier Value and VGM Style Scores, C.H. Robinson is positioned as a strong candidate for investors seeking opportunities in the logistics sector [16].

Logistics companies control and streamline various facets related to the movement of goods, including warehousing and transportation, from the point of origin to the point of consumption based on customer needs. Logistics, naturally, involves a high degree of coordination between the parties involved in acquiring, storing, and transporting resources and goods on a global scale.So far in 2024, logistics companies have been hurt by headwinds ranging from supply-chain disruptions, a challenging macroeconomic e ...

As Dave Bozeman takes the stage at his first investor day as CEO of C.H. Robinson, he'll have to contend with a freight recession, the threat of higher tariffs and the turnaround of a century-old logistics giant."I want to lay out our vision and that we actually already started executing," Bozeman told CNBC in an exclusive interview ahead of the company's investor day on Thursday. "We are going to grow market share, and we are going to expand our overall operating margins."On Thursday executives of the ship ...