C.H. Robinson Reports Better-Than-Expected Q4 Profit Amid Market Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
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Source: seekingalpha
- Earnings Beat: C.H. Robinson (CHRW) reported an adjusted profit of $1.23 per share in Q4, reflecting a 1.7% year-over-year increase and exceeding expectations by 10 cents, demonstrating resilience in a challenging market environment.
- Market Share Gains: Despite weak global freight demand, C.H. Robinson achieved approximately 1% growth in North American Surface Transportation (NAST) total volume and about 3% growth in truckload volume, showcasing its competitive edge through disciplined revenue management.
- Margin Improvement: NAST's adjusted gross profit margin improved by 20 basis points to 14.6%, indicating successful cost control measures, even as total revenue declined due to the divestiture of its European business and pricing pressures.
- Increased Cash Flow: The company generated $305.4 million in operating cash flow, an increase of $37.5 million, highlighting ongoing improvements in cash management and operational efficiency.
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Analyst Views on CHRW
Wall Street analysts forecast CHRW stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CHRW is 167.65 USD with a low forecast of 85.00 USD and a high forecast of 210.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
14 Buy
5 Hold
1 Sell
Moderate Buy
Current: 184.280
Low
85.00
Averages
167.65
High
210.00
Current: 184.280
Low
85.00
Averages
167.65
High
210.00
About CHRW
C.H. Robinson Worldwide, Inc. is a global logistics provider. The Company's segments include North American Surface Transportation (NAST), Global Forwarding, and All Other and Corporate. NAST segment provides transportation and logistics services across North America through a network of offices in the United States, Canada, and Mexico. NAST segment’s services include truckload and less than truckload transportation brokerage services. Global Forwarding segment provides transportation and logistics services through an international network of offices in North America, Europe, Asia, Oceania, South America, and the Middle East and also contracts with independent agents worldwide. Global Forwarding segment’s services include ocean freight services, air freight services, and customs brokerage. All Other and Corporate segment includes Robinson Fresh and Managed Solutions. Robinson Fresh provides sourcing services. In its Managed Solutions business, it often acts as the shipper’s agent.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
C.H. Robinson Reports Better-Than-Expected Q4 Profit Amid Market Challenges
- Earnings Beat: C.H. Robinson (CHRW) reported an adjusted profit of $1.23 per share in Q4, reflecting a 1.7% year-over-year increase and exceeding expectations by 10 cents, demonstrating resilience in a challenging market environment.
- Market Share Gains: Despite weak global freight demand, C.H. Robinson achieved approximately 1% growth in North American Surface Transportation (NAST) total volume and about 3% growth in truckload volume, showcasing its competitive edge through disciplined revenue management.
- Margin Improvement: NAST's adjusted gross profit margin improved by 20 basis points to 14.6%, indicating successful cost control measures, even as total revenue declined due to the divestiture of its European business and pricing pressures.
- Increased Cash Flow: The company generated $305.4 million in operating cash flow, an increase of $37.5 million, highlighting ongoing improvements in cash management and operational efficiency.
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