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Why Is C.H. Robinson (CHRW) Down 1.2% Since Last Earnings Report?
CHRWC.H. Robinson(CHRW) ZACKS·2025-02-28 17:36

Core Viewpoint - C.H. Robinson Worldwide reported mixed fourth-quarter 2024 results, with earnings exceeding estimates but revenues falling short, indicating potential challenges in the market [2][3]. Financial Performance - Quarterly earnings per share were 1.21,surpassingtheZacksConsensusEstimateof1.21, surpassing the Zacks Consensus Estimate of 1.12, and reflecting a 142% year-over-year improvement [2]. - Total revenues amounted to 4.18billion,missingtheZacksConsensusEstimateof4.18 billion, missing the Zacks Consensus Estimate of 4.47 billion, and decreased by 0.9% year over year due to lower volume and pricing in truckload services, partially offset by higher pricing in ocean services [3]. - Adjusted gross profits increased by 10.7% year over year to 684.6million,drivenbyhigheradjustedgrossprofitpertransactionintruckloadandoceanservices[3].SegmentalResults−NorthAmericanSurfaceTransportationrevenueswere684.6 million, driven by higher adjusted gross profit per transaction in truckload and ocean services [3]. Segmental Results - North American Surface Transportation revenues were 2.80 billion, down 6.6% year over year, attributed to lower truckload volume and pricing due to an oversupply of truckload capacity [5]. - Global Forwarding revenues grew by 24.7% year over year to 883.96million,supportedbyhigherpricinginoceanservices,withadjustedgrossprofitsrisingby25.6883.96 million, supported by higher pricing in ocean services, with adjusted gross profits rising by 25.6% to 203.8 million [6]. - Revenues from other sources decreased by 2.8% year over year to 497.98million[6].OperatingMetrics−Adjustedoperatingmarginimprovedto26.8497.98 million [6]. Operating Metrics - Adjusted operating margin improved to 26.8%, an increase of 940 basis points from the previous year, while operating expenses decreased by 2.0% to 500.8 million [4]. - The transportation unit delivered an adjusted gross profit of 684.62million,up10.7684.62 million, up 10.7% from the prior year, with notable growth in ocean (28.2%) and air (44.8%) services [7]. Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the fourth quarter were 145.76 million, up from 131.70millioninthepriorquarter,whilelong−termdebtdecreasedto131.70 million in the prior quarter, while long-term debt decreased to 921.85 million from 1.41billion[8].−Cashgeneratedfromoperationswas1.41 billion [8]. - Cash generated from operations was 267.9 million, significantly higher than 47.3millionintheprior−yearquarter,drivenbyanincreaseinnetincomeandchangesinnetoperatingworkingcapital[9].ShareholderReturnsandCapitalExpenditures−Thecompanyreturned47.3 million in the prior-year quarter, driven by an increase in net income and changes in net operating working capital [9]. Shareholder Returns and Capital Expenditures - The company returned 82.8 million to shareholders, including 74.5millionindividendsand74.5 million in dividends and 8.3 million in share repurchases, with capital expenditures totaling 15.2millioninthereportedquarter[10].−Expectedcapitalexpendituresfor2025areprojectedtobebetween15.2 million in the reported quarter [10]. - Expected capital expenditures for 2025 are projected to be between 75 million and $85 million [11]. Market Outlook - Estimates for C.H. Robinson have trended upward over the past month, indicating a positive outlook for the stock [12][14]. - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [14].