CH Robinson (CHRW) Missed Q4 results, revenue up 43% YoY

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CH Robinson WorldwideCHRW’s fourth-quarter 2021 earnings of $1.74 per share were below Zacks’ consensus estimate of $1.85. However, net income jumped 61.1% year-over-year.

Total revenue of $6,501.8 million exceeded Zacks’ consensus estimate of $6,190.8 million. Revenue jumped 42.9% year-over-year due to higher prices and volumes across most of the company’s service lines.

Total operating expenses increased 31.2% year over year to $568.9 million due to higher personnel costs and selling, general and administrative expenses. Adjusted gross margin increased 33.7% year-over-year to $856.3 million, primarily due to higher volumes across most business departments, as well as a increase in adjusted gross margin per transaction.

CH Robinson Worldwide, Inc. Price, Consensus and EPS Surprise

CH Robinson Worldwide, Inc. price-consensus-eps-surprise-chart | CH Robinson Worldwide, Inc. Quote

CH Robinson returned $222.8 million to shareholders in the fourth quarter through a combination of cash dividends ($68.4 million) and share buybacks ($154.4 million). Capital expenditures totaled $18.4 million during the quarter under review. The company expects capital expenditures of between $90 million and $100 million for 2022. The majority of the amount is for technology investments.

Sector results

At North American Surface Transportation (“NAST”), total revenue was $3.90 billion (up 26.1%) in the fourth quarter. Segment revenues benefited from higher truckload and less than truckload (“LTL”) prices, as well as an increase in truckload shipments. Segment adjusted gross margin increased 19.7%, driven by a 22.2% increase in adjusted gross margin per load, which was helped by higher adjusted gross margin per load and increased shipments . NAST’s results include Robinson Fresh transport, which was previously featured in a separate segment.

Global Forwarding’s total revenue was $2.14 billion, up more than 100% year-over-year. With increased freight demand and capacity constraints, higher prices and volumes in the ocean and air service units boosted results. The segment’s adjusted gross profit jumped 71.9% year-over-year.

A historical presentation of the results by company is given below:

Transport: The unit (including truckload, intermodal, LTL, ocean, air, customs and other logistics services) reported adjusted gross profit of $832.40 million in the current quarter, up 34, 6% compared to the figure for the previous year.

Adjusted gross profit for the truckload segment climbed 22.3% year-over-year to $339.51 million. Adjusted LTL gross margin increased 18.3% year over year to $139.46 million, as adjusted gross margin per order increased 23.5%. LTL volumes decreased by 4%.

Adjusted gross profit for the shipping segment jumped 86.6% year-over-year to $209.80 million. The same in the airline segment soared 84.1% to $65.78 million. Customs-adjusted gross profit rose 5.7% to $25.34 million.

Adjusted gross profit from other logistics services increased 2.7% to $52.51 million.

Supply: Segment adjusted gross profit increased 8.9% to $23.94 million.

Liquidity

This Zacks Rank #2 (Buy) company ended the fourth quarter with cash and cash equivalents of $257.41 million compared to $243.80 million at the end of December 2020. Long-term debt was 1.39 billion dollars compared to $1.09 billion at the end of December 2020. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sector insights

In the broader transport sector, CSX Company CSX, Canadian National Railway CNI and GATX Company GATX recently released its fourth quarter 2021 results.

CSX, carrying a Zacks Rank #3 (Hold), reported Q4 2021 earnings of 42 cents per share, which beat Zacks’ consensus estimate by a penny. Net income improved double-digit year-over-year on higher revenue.

CSX’s total revenue of $3,427 million topped Zacks’ consensus estimate of $3,296 million. Revenue increased 21.3% year-over-year due to growth across all of its businesses, as well as revenue from Quality Carriers, which the company acquired in July 2021.

Canadian National, carrying a No. 3 Zacks rank, reported fourth-quarter 2021 earnings (excluding 2 cents of one-time items) of $1.36 per share (CA$1.71), which topped the consensus estimate of $1.21. Net income grew double-digit year-over-year due to lower costs.

Canadian National’s quarterly revenue of $2,977.4 million (C$3,753 million) beat Zacks’ consensus estimate of $2,917.4 million. Revenue improved year over year, driven by higher freight rates and fuel surcharges.

GATX, carrying a No. 2 Zacks rank, reported fourth-quarter 2021 earnings (excluding 11 cents of one-time items) of $1.58 per share, which beat the Zacks consensus estimate of 1.07 $. Net income jumped more than 200% year over year.

GATX’s total revenue of $321 million increased 5.3% year-over-year, primarily due to a 5.2% increase in rental revenue, which amounted to 288, $4 million. Rental income contributed 89.8% of turnover.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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