Why Is C.H. Robinson (CHRW) Up 2.1% Since Last Earnings Report?

Core Insights - C.H. Robinson Worldwide reported third-quarter 2024 earnings of $1.28, exceeding the Zacks Consensus Estimate of $1.12, and showing year-over-year improvement [2] - Total revenues reached $4.64 billion, surpassing the Zacks Consensus Estimate of $4.50 billion, reflecting a 6.9% year-over-year increase driven by higher pricing and volume in ocean services [2] Financial Performance - Adjusted gross profits increased by 15.8% year over year to $735.3 million, attributed to higher adjusted gross profit per transaction in ocean and truckload services [3] - The adjusted operating margin improved to 24.5%, a rise of 660 basis points from the previous year, while operating expenses increased by 6.5% to $555.1 million [3] Segment Performance - North American Surface Transportation reported total revenues of $2.93 billion, down 4.9% year over year, due to lower truckload pricing, with adjusted gross profits growing 8.8% to $420.7 million [4] - Global Forwarding revenues surged by 58.7% year over year to $1.14 billion, with adjusted gross profits increasing by 38.1% to $234.6 million [5] - Revenues from other sources rose by 6.3% year over year to $568.83 million, with adjusted gross profits increasing by 18.1% to $36.7 million [6] Profit Distribution - The transportation unit delivered an adjusted gross profit of $702.31 million, up 15.6% from the prior year [7] - Adjusted gross profits for Truckload, LTL, Ocean, Air, and Customs grew by 13.9%, 3.8%, 56.9%, 11.3%, and 13.5% year over year, respectively, while other logistics services saw a decline of 16.2% [8] 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, with long-term debt slightly decreasing to $1.41 billion [9] - The company generated $108.1 million in cash from operations, with capital expenditures totaling $17.3 million, and returned $77.1 million to shareholders [10] Future Outlook - Capital expenditures for 2024 are now expected to be between $75 million and $85 million, revised down from the previous range of $85 million to $95 million [11] - There has been an upward trend in estimates revision for the stock, indicating positive sentiment among investors [12][14]