C.H. Robinson Worldwide (CHRW) reported $4.64 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 7%. EPS of $1.28 for the same period compares to $0.84 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $4.5 billion, representing a surprise of +3.16%. The company delivered an EPS surprise of +14.29%, with the consensus EPS estimate being $1.12. While investors closely watch year-over-year changes in headline numbers -- revenue and ear ...

| --- | --- | --- | --- | |-------|-------------------------------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | Dave Bozeman, President & CEO Arun Rajan, Chief Strategy & Innovation Officer Damon Lee, Chief Financial Officer Michael Castagnetto, President of NAST Chuck Ives, Senior Director of Investor Relations | ...

Group 1: Earnings Performance - C.H. Robinson Worldwide reported quarterly earnings of $1.28 per share, exceeding the Zacks Consensus Estimate of $1.12 per share, and up from $0.84 per share a year ago, representing an earnings surprise of 14.29% [1] - The company posted revenues of $4.64 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.16% and increasing from $4.34 billion year-over-year [2] Group 2: Stock Performance and Market Comparison - C.H. Robinson shares have increased approximately 25% since the beginning of the year, outperforming the S&P 500's gain of 22.3% [3] - The current consensus EPS estimate for the upcoming quarter is $1.06 on revenues of $4.5 billion, and for the current fiscal year, it is $4.21 on revenues of $17.9 billion [7] Group 3: Industry Outlook - The Transportation - Services industry, to which C.H. Robinson belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of C.H. Robinson's stock may be influenced by the overall outlook for the industry, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) The company achieved strong Q3 and YTD 2024 financial performance, with significant profitability and income growth [Third Quarter 2024 Highlights](index=1&type=section&id=Third%20Quarter%202024%20Highlights) C.H. Robinson reported a significant year-over-year increase in profitability for the third quarter of 2024, driven by strong execution and disciplined growth. Gross profits rose 15.5% to $723.8 million, and income from operations surged 58.7% to $180.1 million. Adjusted EPS increased by 45.5% to $1.28, reflecting a substantial improvement in operating leverage and productivity Q3 2024 Key Financial Metrics (YoY) | Metric | Q3 2024 | YoY Change | | :--- | :--- | :--- | | Gross Profits | $723.8 million | +15.5% | | Income from Operations | $180.1 million | +58.7% | | Adjusted Operating Margin | 24.5% | +660 bps | | Diluted EPS | $0.80 | +17.6% | | Adjusted EPS | $1.28 | +45.5% | | Cash from Operations | $108.1 million | -$97.2 million | - The decrease in cash generated by operations was attributed to an increase in net operating working capital related to higher ocean rates[2](index=2&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Dave Bozeman attributed the strong Q3 results to improved execution from the new operating model, which focuses on disciplined volume growth, yield optimization, and increased efficiency. He emphasized the cultural shift towards proactive problem-solving and accountability, noting that while the company is early in its journey, the operating model is enhancing strategic execution and performance - The company is deploying a new operating model focused on strong execution, disciplined volume growth, and delivering exceptional service[3](index=3&type=chunk) - Management highlighted improved quality of volume and expanded NAST gross profit margin due to a focus on testing market conditions and optimizing yield[3](index=3&type=chunk) - The company remains on track to deliver over **30%** compound growth in productivity from the end of **2022** to the end of **2024**[3](index=3&type=chunk) [Summary of Third Quarter of 2024 Results](index=3&type=section&id=Summary%20of%20Third%20Quarter%20of%202024%20Results) In Q3 2024, total revenues increased by 7.0% to $4.6 billion, primarily due to higher pricing and volume in ocean services. Adjusted gross profits grew 15.8% to $735.3 million. Despite a 6.5% rise in operating expenses, which included a $57.0 million loss on a planned divestiture, income from operations increased by 58.7% to $180.1 million. Net income rose 18.6% to $97.2 million Q3 2024 Financial Performance vs. Q3 2023 | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $4.6 billion | $4.3 billion | +7.0% | | Gross Profits | $723.8 million | $626.6 million | +15.5% | | Adjusted Gross Profits | $735.3 million | $634.8 million | +15.8% | | Income from Operations | $180.1 million | $113.5 million | +58.7% | | Net Income | $97.2 million | $81.9 million | +18.6% | | Diluted EPS | $0.80 | $0.68 | +17.6% | - Operating expenses increased **6.5%** to **$555.1 million**, mainly due to a **$57.0 million** loss on the planned divestiture of the Europe Surface Transportation business and higher variable compensation, despite a **9.6%** decline in average employee headcount[6](index=6&type=chunk) - The effective tax rate was **32.4%**, a significant increase from **11.7%** in Q3 2023, driven by higher pre-tax income and non-recurring discrete items[9](index=9&type=chunk) [Summary of 2024 Year-to-Date Results](index=4&type=section&id=Summary%20of%202024%20Year-to-Date%20Results) For the first nine months of 2024, total revenues rose 1.2% to $13.5 billion. Adjusted gross profits increased 4.8% to $2.1 billion. Income from operations grew 19.2% to $485.3 million, and net income increased 7.6% to $316.4 million. The results reflect higher profitability in ocean and truckload services, partially offset by a $57.0 million loss on a planned divestiture YTD 2024 Financial Performance vs. YTD 2023 | Metric | YTD 2024 | YTD 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $13.5 billion | $13.4 billion | +1.2% | | Gross Profits | $2.0 billion | $2.0 billion | +4.4% | | Adjusted Gross Profits | $2.1 billion | $2.0 billion | +4.8% | | Income from Operations | $485.3 million | $407.2 million | +19.2% | | Net Income | $316.4 million | $294.2 million | +7.6% | | Diluted EPS | $2.63 | $2.46 | +6.9% | - Operating expenses for the nine-month period increased by **1.0%**, primarily due to the **$57.0 million** loss on the planned divestiture of the Europe Surface Transportation business[13](index=13&type=chunk) - Average employee headcount declined by **10.5%** year-to-date, reflecting ongoing cost optimization efforts[13](index=13&type=chunk) [Segment Performance](index=5&type=section&id=Segment%20Performance) Global Forwarding and NAST segments showed strong Q3 profitability, despite NAST revenue declines, while other segments reported mixed results [North American Surface Transportation (NAST)](index=5&type=section&id=North%20American%20Surface%20Transportation%20(NAST)%20Results) The NAST segment's Q3 revenues decreased 4.9% to $2.9 billion due to lower truckload pricing. However, profitability improved significantly, with adjusted gross profits up 8.8% to $420.7 million and income from operations increasing 32.7% to $148.8 million. This was driven by a 21.5% increase in truckload adjusted gross profit per mile and a 10.9% reduction in average employee headcount NAST Q3 2024 Financial Results (in thousands) | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $2,934,617 | $3,086,970 | (4.9)% | | Adjusted Gross Profits | $420,664 | $386,510 | 8.8% | | Income from Operations | $148,767 | $112,121 | 32.7% | - Truckload adjusted gross profits increased **16.6%**, driven by a **21.0%** increase in adjusted gross profit per shipment, despite a **3.5%** decrease in truckload shipments[19](index=19&type=chunk) - LTL adjusted gross profits increased **3.7%**, driven by a **2.5%** increase in LTL volume and a **1.0%** increase in adjusted gross profit per order[19](index=19&type=chunk) - Adjusted operating margin for NAST expanded by **640 basis points** to **35.4%**[19](index=19&type=chunk) [Global Forwarding](index=6&type=section&id=Global%20Forwarding%20Results) The Global Forwarding segment delivered exceptionally strong Q3 results, with revenues increasing 58.7% to $1.1 billion, driven by higher pricing and volume in ocean services. Adjusted gross profits grew 38.1% to $234.6 million. Income from operations reached $88.1 million, a dramatic increase from $3.5 million in the prior year, leading to a 3,550 basis point expansion in adjusted operating margin to 37.6% Global Forwarding Q3 2024 Financial Results (in thousands) | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,141,190 | $719,045 | 58.7% | | Adjusted Gross Profits | $234,636 | $169,893 | 38.1% | | Income from Operations | $88,115 | $3,491 | N/M | - Ocean adjusted gross profits surged **57.4%**, driven by a **47.0%** increase in adjusted gross profit per shipment and a **7.0%** increase in shipments[21](index=21&type=chunk) - Air adjusted gross profits increased **11.4%**, driven by a **20.0%** increase in metric tons shipped[21](index=21&type=chunk) - Operating expenses decreased **11.9%**, primarily due to prior-year restructuring expenses and current-year cost optimization efforts, including a **10.4%** reduction in average employee headcount[21](index=21&type=chunk) [All Other and Corporate](index=7&type=section&id=All%20Other%20and%20Corporate%20Results) In Q3, this segment saw mixed results. Robinson Fresh adjusted gross profits increased 18.1% to $36.7 million. However, Managed Services adjusted gross profits decreased 5.0% due to lower volume, and Other Surface Transportation adjusted gross profits fell 14.7%, primarily due to weakness in Europe truckload All Other and Corporate Adjusted Gross Profits Q3 2024 (in thousands) | Service Line | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Robinson Fresh | $36,708 | $31,083 | 18.1% | | Managed Services | $27,949 | $29,427 | (5.0)% | | Other Surface Transportation | $15,296 | $17,936 | (14.7)% | - The increase in Robinson Fresh adjusted gross profits was attributed to growth in integrated supply chain solutions for retail and foodservice customers[23](index=23&type=chunk) - The decrease in Other Surface Transportation was primarily driven by a **17.0%** decrease in Europe truckload adjusted gross profits[23](index=23&type=chunk) [Financial Details and Outlook](index=7&type=section&id=Financial%20Details%20and%20Outlook) The company reported increased interest and foreign currency expenses, a higher effective tax rate, and decreased operating cash flow despite capital returns [Other Income Statement Items](index=7&type=section&id=Other%20Income%20Statement%20Items) Interest and other expenses for Q3 totaled $36.3 million, including $22.1 million in interest expense and a $15.1 million net loss from foreign currency. The effective tax rate rose to 32.4% from 11.7% last year. The company updated its full-year 2024 effective tax rate guidance to a range of 18% to 20% - Interest and other income/expense, net was a **$36.3 million** expense, which included a **$15.1 million** net loss from foreign currency revaluation[24](index=24&type=chunk) - The Q3 effective tax rate was **32.4%**, up from **11.7%** in Q3 2023[25](index=25&type=chunk) - The company now expects its full-year 2024 effective tax rate to be between **18%** and **20%**[25](index=25&type=chunk) [Cash Flow and Capital Distribution](index=8&type=section&id=Cash%20Flow%20and%20Capital%20Distribution) Cash from operations in Q3 was $108.1 million, a decrease from $205.2 million in the prior year, primarily due to a $190.0 million decline in cash provided by changes in net operating working capital. The company returned $77.1 million to shareholders through dividends and stock repurchases. Capital expenditures for 2024 are now expected to be between $75 million and $85 million Q3 2024 Cash Flow & Capital Allocation | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Cash from Operations | $108.1 million | $205.2 million | | Cash Dividends | $73.0 million | - | | Stock Repurchases | $4.1 million | - | | Total Returned to Shareholders | $77.1 million | - | | Capital Expenditures | $17.3 million | - | - The decrease in operating cash flow was mainly due to a **$165.5 million** sequential increase in net operating working capital in Q3 2024, compared to a **$24.5 million** decrease in Q3 2023[27](index=27&type=chunk) - Updated 2024 capital expenditure guidance is now **$75 million** to **$85 million**[28](index=28&type=chunk) [Financial Statements and Reconciliations](index=10&type=section&id=Financial%20Statements%20and%20Reconciliations) The company presents non-GAAP reconciliations and consolidated financial statements, detailing income, balance sheet, and cash flow for performance and position [GAAP to Non-GAAP Reconciliation](index=11&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) The company provides non-GAAP metrics such as adjusted gross profit, adjusted operating margin, and adjusted EPS to offer a clearer view of core performance. These adjustments primarily exclude items like amortization of certain software, restructuring costs, and losses on divestitures. For Q3 2024, adjusted operating margin was 24.5%, and adjusted EPS was $1.28, significantly higher than their GAAP counterparts due to a $57.0 million loss on a planned divestiture Q3 2024 GAAP vs. Non-GAAP Reconciliation | Metric | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | Gross Profit | $723.8M | +$11.4M | $735.3M | | Income from Operations | $180.1M | +$61.5M | $241.6M | | Operating Margin | 3.9% | - | 24.5% | | Net Income | $97.2M | +$58.3M | $155.5M | | Diluted EPS | $0.80 | +$0.48 | $1.28 | - Adjusted gross profit is calculated by excluding the amortization of internally developed software used to directly serve customers and carriers[37](index=37&type=chunk) - Adjustments for Q3 2024 included a **$57.0 million** pre-tax loss on the planned divestiture of the Europe Surface Transportation business and **$4.4 million** in pre-tax restructuring costs[43](index=43&type=chunk) [Consolidated Financial Statements](index=14&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements provide a detailed view of the company's financial position and performance. The income statement shows a 19.2% year-to-date increase in operating income. The balance sheet indicates total assets grew to $5.61 billion from $5.23 billion at year-end 2023. The cash flow statement reveals a decrease in cash from operations for the nine-month period, from $684.6 million in 2023 to $241.2 million in 2024 [Condensed Consolidated Statements of Income](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the nine months ended September 30, 2024, total revenues were $13.54 billion, a 1.2% increase YoY. Income from operations rose 19.2% to $485.3 million, and net income increased 7.6% to $316.4 million, resulting in a diluted EPS of $2.63 Condensed Income Statement - Nine Months Ended Sep 30 (in thousands) | Account | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $13,540,300 | $13,374,556 | 1.2% | | Total Costs and Expenses | $13,054,958 | $12,967,378 | 0.7% | | Income from Operations | $485,342 | $407,178 | 19.2% | | Net Income | $316,384 | $294,156 | 7.6% | | Diluted EPS | $2.63 | $2.46 | 6.9% | [Condensed Consolidated Balance Sheets](index=17&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, the company had total assets of $5.61 billion, up from $5.23 billion at the end of 2023. Total liabilities increased to $3.97 billion from $3.81 billion, and total stockholders' investment grew to $1.64 billion from $1.42 billion over the same period Balance Sheet Highlights (in thousands) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $131,704 | $145,524 | | Total Current Assets | $3,338,986 | $2,880,694 | | Total Assets | $5,613,355 | $5,225,280 | | Total Current Liabilities | $2,240,837 | $2,051,993 | | Total Liabilities | $3,973,289 | $3,806,583 | | Total Stockholders' Investment | $1,640,066 | $1,418,697 | [Condensed Consolidated Statements of Cash Flows](index=18&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash provided by operating activities was $241.2 million, a significant decrease from $684.6 million in the prior-year period. Net cash used for investing activities was $59.1 million, and net cash used for financing activities was $184.2 million, which included $220.3 million in cash dividends Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $241,154 | $684,615 | | Net Cash used for Investing Activities | ($59,099) | ($66,651) | | Net Cash used for Financing Activities | ($184,244) | ($651,519) | | Net Change in Cash | ($2,842) | ($40,263) |

C.H. Robinson (CHRW) is scheduled to report third-quarter 2024 results on Oct. 30 after market close. Find the latest EPS estimates and surprises on Zacks Earnings Calendar. C.H. Robinson has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average beat is 7.3%. The Zacks Consensus Estimate for CHRW's soon-to-be-reported quarter's earnings has been revised upward by 3.70% in the past 60 days to $1.12 per share. ...

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C.H. Robinson Worldwide (CHRW) is benefiting from its commendable cost-cutting initiatives. Shareholderfriendly initiatives are encouraging. However, high capex may play spoilsport. Factors Favoring CHRW C.H. Robinson's proactive cost-cutting initiatives bode well for the company. The fall in operating expenses is boosting the company's bottom line. In the first half of 2024,operating expenses decreased 1.7% year over year to $1 billion. Personnel expenses decreased 2.6% to $740.3 million, primarily due to ...

Core Insights - C.H. Robinson Worldwide (CHRW) is positioned to continue its earnings-beat streak, particularly in the upcoming earnings report [1] - The company has a history of exceeding earnings estimates, with an average surprise of 32.19% over the last two quarters [1][2] Earnings Performance - For the most recent quarter, C.H. Robinson reported earnings of $1.15 per share, surpassing the expected $0.95 per share, resulting in a surprise of 21.05% [2] - In the previous quarter, the company reported $0.86 per share against an expectation of $0.60 per share, achieving a surprise of 43.33% [2] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for C.H. Robinson, with a positive Earnings ESP of +7.83%, indicating bullish sentiment among analysts [3][6] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [6] Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4] - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [5] Upcoming Earnings Report - C.H. Robinson's next earnings report is expected to be released on October 30, 2024 [6]

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, October 8th: HCI Group (HCI) This company which is engaged in diverse business activities, including property and casualty insurance, information technology, real estate and reinsurance, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.0% over the last 60 days. HCI Group's shares gained 12.9% over the last three month compared with the ...

Group 1: Port Strike Overview - Dockworkers at U.S. East Coast and Gulf Coast ports initiated a large-scale strike on Oct. 1, 2024, marking the first such action in nearly five decades, following the breakdown of contract renewal negotiations [1][3] - Nearly 50,000 port workers represented by the International Longshoremen's Association (ILA) are involved in the strike after their six-year contract expired on Sept. 30, 2024 [1][3] Group 2: Reasons for the Strike - The strike was triggered by unacceptable wage increase proposals from the United States Maritime Alliance (USMX), with ILA members demanding a 61.5% increase over six years [4] - ILA President Harold Daggett highlighted that even a $5 hourly wage increase over six years would only average a 9.98% annual increase, insufficient to keep pace with inflation [4] Group 3: Economic Impact - The strike is projected to cost the economy $5 billion per day, disrupting shipments of essential goods across multiple states [5] - Closed ports handle nearly 60% of container shipments to the U.S., with significant implications for consumer goods availability and potential price hikes if the strike continues [6] Group 4: Transportation Sector Impact - The strike is expected to benefit international airfreight providers like UPS and FedEx, as demand for air freight is likely to increase due to the disruption [8] - Freight forwarders such as Expeditors and C.H. Robinson are also anticipated to see increased volumes as shippers turn to third-party logistics providers [9] - Conversely, East Coast railroads like Norfolk Southern may face adverse effects due to decreased volumes as goods stop moving into the ports [9] Group 5: Broader Implications - The ongoing strike could choke the flow of imports and exports in the U.S., necessitating an early resolution to avoid setbacks to the recovering economy [10]