Why Is C.H. Robinson (CHRW) Up 3% Since Last Earnings Report?

Core Viewpoint - C.H. Robinson Worldwide (CHRW) reported mixed third-quarter 2025 results, with earnings exceeding estimates but revenues falling short, leading to questions about the sustainability of its recent positive stock performance [3][4][16]. Financial Performance - Quarterly earnings per share were $1.40, surpassing the Zacks Consensus Estimate of $1.29, reflecting a year-over-year improvement of 9.3% [4]. - Total revenues amounted to $4.14 billion, missing the Zacks Consensus Estimate of $4.29 billion and declining 10.9% year over year due to the divestiture of the Europe Surface Transportation business and lower pricing and volume in ocean and truckload services [4]. - Adjusted gross profits decreased by 4% year over year to $706.1 million, impacted by lower transaction volume in ocean services and the divestiture, although partially offset by higher profits in less than truckload (LTL) and customs services [6]. Segment Performance - North American Surface Transportation revenues were $2.96 billion, up 1.1% year over year, driven by higher volumes in truckload and LTL services, despite lower pricing in truckload services [8]. - Global Forwarding revenues fell 31.1% year over year to $786.34 million, attributed to lower pricing and volume in ocean services [9]. - Adjusted gross profits for the Transportation unit were $670.85 million, down 4.5% from the prior year, with LTL, Air, Customs, and Other logistics services showing growth, while Truckload and Ocean services experienced declines [10]. Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the third quarter were $136.83 million, down from $155.99 million in the previous quarter, while long-term debt increased to $1.18 billion from $922.31 million [11]. - Cash generated from operations was $275.4 million, significantly up from $108.1 million in the same quarter last year, driven by increased net income and reduced cash used in working capital [12]. Shareholder Returns and Capital Expenditures - The company returned $189.6 million to shareholders, including $74.7 million in dividends and $114.9 million in share repurchases, with capital expenditures totaling $18.6 million for the quarter [13]. - For the full year 2025, capital expenditures are expected to be between $65 million and $75 million [13]. Market Sentiment and Outlook - There has been a downward trend in earnings estimates, with a consensus estimate shift of -5.37% [14]. - C.H. Robinson holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [16].