C.H. Robinson Q4 Earnings Surpass Estimates, Increase Year Over Year

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].