C.H. Robinson Q3 Earnings & Revenues Top Estimates, Increase Y/Y

Core Viewpoint - C.H. Robinson Worldwide, Inc. (CHRW) reported strong third-quarter 2024 results, with both earnings and revenues exceeding expectations, indicating effective execution and growth despite a challenging freight environment [1][3]. Financial Performance - Quarterly earnings per share (EPS) reached $1.28, surpassing the Zacks Consensus Estimate of $1.12 and showing year-over-year improvement [1]. - Total revenues amounted to $4.64 billion, exceeding the Zacks Consensus Estimate of $4.50 billion, and reflecting a 6.9% year-over-year increase driven by higher pricing and volume in ocean services [2]. - Adjusted gross profits rose 15.8% year over year to $735.3 million, attributed to increased gross profit per transaction in ocean and truckload services [2]. - The adjusted operating margin improved to 24.5%, up 660 basis points from the previous year [2]. Segmental Results - North American Surface Transportation reported total revenues of $2.93 billion, a decline of 4.9% year over year due to lower truckload pricing, which was below expectations [4]. - Global Forwarding's revenues surged 58.7% year over year to $1.14 billion, significantly exceeding expectations, driven by higher pricing and volume in ocean services [5]. - Revenues from other sources increased 6.3% year over year to $568.83 million, also surpassing expectations, with adjusted gross profits rising 18.1% [6]. Operational Insights - Operating expenses increased by 6.5% year over year to $555.1 million [3]. - The transportation unit generated an adjusted gross profit of $702.31 million, up 15.6% from the prior year, with notable growth in ocean services [7]. Balance Sheet and Cash Flow - At the end of the third quarter, cash and cash equivalents stood at $131.70 million, up from $113.16 million in the previous quarter, while long-term debt slightly decreased to $1.41 billion [8]. - The company generated $108.1 million in cash from operations and returned $77.1 million to shareholders, including $73 million in dividends and $4.1 million in share repurchases [9]. Future Outlook - Capital expenditures for 2024 are now projected to be between $75 million and $85 million, revised down from the previous estimate [10]. Market Performance - C.H. Robinson's shares have increased by 26.9% year to date, outperforming both its industry and the S&P 500 [11].