C.H. Robinson's Earnings Lag, Revs Top - Analyst Blog
08 Mai 2013 - 11:29AM
Zacks
C.H. Robinson Worldwide Inc. (CHRW) reported
first quarter 2013 earnings per share of 64 cents, missing the
Zacks Consensus Estimate by 5 cents. The results inched down 1.5%
from 65 cents in the year-ago quarter.
The performance of the company was hurt by margin contraction,
slacked growth, and steeper selling and general expenses.
Total revenue in the first quarter escalated 17.3% year over year
to $2.99 billion, surpassing the Zacks Consensus Estimate of $2.97
billion, supported by strong contributions from some business
segments.
Total operating expenses rose 17.1% year over year to $287.0
million in the first quarter, resulting in an operating ratio
(operating expenses as a percentage of net revenue) of 63% versus
59.1% in the year-earlier quarter.
Segment Details
Transportation: The segment (comprising
Truck, Intermodal, Ocean, Air and Other logistics services)
reported net revenue of $421.3 million in the first quarter, up
14.7% year over year.
Net revenue from Truck (comprising truckload and
less-than-truckload services) increased 3.7% to $327.1 million in
the reported quarter, attributable to volume growth from the
acquisition of Apreo Logistics S.A. in Oct 2012 as well as
increased shipments, partially offset by high cost rate.
Net revenue from Intermodal fell 6.3% year over year to $9.1
million due to lower net revenue margin, which was affected by
increased cost of capacity.
Net revenue from Ocean soared 169.6% to $42.5 million, while that
of Air transportation grew 89.0% year over year to $16.8 million,
both aided by Phoenix operations acquired in November last
year.
Net revenue from other logistics services registered 22.3%
year-over-year growth to $17.2 million on the back of more
transactions related to management services.
Sourcing: The segment’s net revenue
dropped slightly 0.3% year over year to $31.8 million, primarily on
low net revenue margin.
Payment Services: The segment’s
(comprising income from subsidiary, T-Chek Systems Inc.) net
revenue declined 83.2% year over year to $2.6 million in the first
quarter, as a result of divesture in T-Chek system.
Liquidity & Debt Position
C.H. Robinson ended the quarter with cash and cash equivalents of
$159.9 million against $210.0 million as of Dec 31, 2013. The
company utilized $8.7 million for the capital expenditure.
Other Stocks
Another logistic company, Expeditors International of
Washington Inc. (EXPD), reported first quarter 2013
adjusted earnings of 39 cents per share, at par with the Zacks
Consensus Estimate. The quarter figure increased 8% from 36
cents.
Other stock worth considering in this sector include Pacer
International Inc. (PACR) that have a Zacks Rank #2
(Buy).
Our Analysis
Although we remain optimistic on the company’s ability to achieve
its long-term growth goal, we believe that the competitive freight
market, declining truckload market share, and limited margin
expansion opportunities could restrict near-term growth. However,
the company’s flexible business structure and efficient cost
control measures along with revenue growth from strong pricing will
prove beneficial in the near future.
C.H. Robinson – which operates with other freight carriers such as
United Parcel Service Inc. (UPS) – has Zacks Rank
#3 (Hold).
CH ROBINSON WWD (CHRW): Free Stock Analysis Report
EXPEDITORS INTL (EXPD): Free Stock Analysis Report
PACER INTL INC (PACR): Free Stock Analysis Report
UTD PARCEL SRVC (UPS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Expeditors International... (NASDAQ:EXPD)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Expeditors International... (NASDAQ:EXPD)
Historical Stock Chart
Von Jul 2023 bis Jul 2024