Latest news with #CHRW
Yahoo
08-07-2025
- Business
- Yahoo
2 Profitable Stocks Worth Investigating and 1 to Be Wary Of
While profitability is essential, it doesn't guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity". Not all profitable companies are created equal, and that's why we built StockStory - to help you find the ones that truly shine bright. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one that may face some trouble. Trailing 12-Month GAAP Operating Margin: 4.1% Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ:CHRW) offers freight transportation and logistics services. Why Do We Steer Clear of CHRW? Annual sales declines of 12.1% for the past two years show its products and services struggled to connect with the market during this cycle Issuance of new shares over the last two years caused its earnings per share to fall by 13.7% annually, even worse than its revenue declines Eroding returns on capital suggest its historical profit centers are aging C.H. Robinson Worldwide is trading at $96.50 per share, or 20x forward P/E. Check out our free in-depth research report to learn more about why CHRW doesn't pass our bar. Trailing 12-Month GAAP Operating Margin: 30.9% Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors. Why Could LRCX Be a Winner? Excellent operating margin of 29.6% highlights the efficiency of its business model, and its profits increased over the last five years as it scaled Strong free cash flow margin of 26.6% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety Industry-leading 63.1% return on capital demonstrates management's skill in finding high-return investments At $98.01 per share, Lam Research trades at 26x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it's free. Trailing 12-Month GAAP Operating Margin: 21.8% One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare. Why Are We Bullish on GE? Annual revenue growth of 14.5% over the last two years was superb and indicates its market share increased during this cycle Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy Improving returns on capital reflect management's ability to monetize investments GE Aerospace's stock price of $248.60 implies a valuation ratio of 44.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
Yahoo
25-06-2025
- Business
- Yahoo
Is C.H. Robinson Stock Underperforming the S&P 500?
Valued at a market cap of $11.2 billion, C.H. Robinson Worldwide, Inc. (CHRW) provides freight transportation and related logistics and supply chain services. The Eden Prairie, Minnesota-based company also operates a sourcing and distribution division under the Robinson Fresh brand, through which it buys, sells, and markets fresh fruits, vegetables, and other value-added perishable items. Companies valued at $10 billion or more are typically classified as 'large-cap stocks,' and CHRW fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the integrated freight & logistics industry. The company's core strength lies in its extensive global freight network and advanced logistics capabilities, making it one of the largest third-party logistics (3PL) providers in the specializes in multi-modal transportation services, including truckload, less-than-truckload (LTL), ocean, air, and intermodal. These services are supported by its proprietary technology platform, Navisphere, which enables real-time visibility, data analytics, and efficient supply chain execution. Super Micro Computer Just Struck a Deal with Ericsson. Should You Buy SMCI Stock Here? CEO Jensen Huang Just Sold Nvidia Stock. Should You? Broadcom Just Got a New Street-High Price Target. Should You Buy AVGO Stock Here? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. This freight and logistics company has dipped 17.9% from its 52-week high of $114.82, reached on Dec. 13, 2024. Shares of CHRW have declined 6.2% over the past three months, lagging behind the S&P 500 Index's ($SPX) 5.6% return during the same time frame. In the longer term, CHRW has gained 6.5% over the past 52 weeks, underperforming SPX's 11.8% rise over the same time frame. Moreover, on a YTD basis, shares of CHRW are down 8.8%, compared to SPX's 3.6% uptick. To confirm its bearish trend, CHRW has been trading below its 200-day moving average since early April. However, it has remained above its 50-day moving average since mid-May, with minor fluctuations. On Apr. 30, CHRW released its Q1 earnings results, and its shares closed up by 1.2% in the following trading session. Due to lower transportation and sourcing revenue, the company's overall revenue declined 8.3% year-over-year to $4 billion and fell short of the consensus estimates by 6%. Yet, both its adjusted gross profit and adjusted operating margin expanded from the year-ago quarter and led to a 36% rise in its adjusted EPS to $1.17. The bottom-line figure surpassed the analyst estimates by a notable 14.7%. The results reflect solid progress in C.H. Robinson's disciplined strategic execution, with improved margin performance despite ongoing challenges in the freight market. C.H. Robinson has outpaced its rival, Expeditors International of Washington, Inc.'s (EXPD) 10.1% loss over the past 52 weeks. However, it has lagged behind EXPD's 3.1% rise on a YTD basis. Despite CHRW's recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy' from the 25 analysts covering it, and the mean price target of $109.46 suggests a 16.1% premium to its current price levels. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Why Is C.H. Robinson (CHRW) Up 6.5% Since Last Earnings Report?
It has been about a month since the last earnings report for C.H. Robinson Worldwide (CHRW). Shares have added about 6.5% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is C.H. Robinson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. It turns out, estimates review flatlined during the past month. Currently, C.H. Robinson has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. C.H. Robinson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
14-05-2025
- Business
- Yahoo
CHRW Q1 Earnings Call: Margin Expansion and Productivity Offset Lower Revenue in Tough Freight Market
Freight transportation intermediary C.H. Robinson (NASDAQ:CHRW) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 8.3% year on year to $4.05 billion. Its non-GAAP profit of $1.17 per share was 11.4% above analysts' consensus estimates. Is now the time to buy CHRW? Find out in our full research report (it's free). Revenue: $4.05 billion vs analyst estimates of $4.26 billion (8.3% year-on-year decline, 4.9% miss) Adjusted EPS: $1.17 vs analyst estimates of $1.05 (11.4% beat) Adjusted EBITDA: $211.1 million vs analyst estimates of $198.9 million (5.2% margin, 6.1% beat) Operating Margin: 4.4%, up from 2.9% in the same quarter last year Free Cash Flow was $90.45 million, up from -$55.8 million in the same quarter last year Market Capitalization: $11.43 billion C.H. Robinson's first quarter results were shaped by a combination of disciplined execution and innovation in a challenging freight environment. Leadership cited market share gains in both truckload and less-than-truckload (LTL) segments, alongside improvements in gross and operating margins, as evidence that their ongoing transformation efforts are yielding results. CEO Dave Bozeman attributed this progress to self-help initiatives and a new operating model, noting, "we are not waiting for a market recovery to improve our financial results." Looking ahead, management highlighted continued investment in automation and generative artificial intelligence (AI) as central to their strategy for margin expansion and operating leverage. Bozeman was candid about the uncertainty posed by new tariffs and shifting global trade patterns, acknowledging that some customers had paused or reduced orders as they assess the impact. Still, he expressed confidence in the company's ability to adapt, stating, "the continued disciplined execution of our strategy... will make us stronger," while emphasizing the scalability and flexibility of the business model. C.H. Robinson's management emphasized that market share gains and improved margins in Q1 were achieved despite a prolonged freight recession and ongoing trade policy disruptions. The team highlighted a focus on operational discipline, digital innovation, and supply chain diversification as key to performance. Market Share in Core Segments: Truckload and LTL volumes outperformed broader market indices, with management attributing these gains to a disciplined approach to pricing and capacity procurement, as well as targeted investments in sales and digital brokerage. AI-Driven Productivity Gains: The rapid scaling of proprietary generative AI tools across the shipping lifecycle reduced manual workload, increased shipment per person per day, and enabled real-time dynamic pricing. Management reported these advances contributed to over 30% productivity improvement in two years. Supply Chain Diversification: The company actively supported customers in diversifying away from China-centric supply chains, reducing exposure to volatile trade lanes and helping offset the impact of new tariffs and global trade disruptions. Cost Optimization and Headcount Management: Operating expenses declined due to ongoing productivity initiatives and a leaner workforce, partially attributed to the divestiture of the European Surface Transportation business. Management stressed the use of attrition and dynamic workforce planning to maintain flexibility. Integration of Managed Solutions: The integration of transportation management and managed services under a single strategy, referred to as the "One Robinson" approach, was cited as a lever for moving up the value stack and capturing more wallet share from existing customers. Management expects the external freight environment to remain volatile, with geopolitical developments, tariffs, and evolving supply chain strategies shaping demand. The company's outlook is guided by its focus on automation, cost discipline, and helping clients navigate uncertainty. Automation and AI Expansion: Management believes ongoing investment in generative AI and automation will further decouple headcount from volume, supporting margin expansion and business scalability regardless of market cycles. Customer Supply Chain Shifts: The company expects continued resilience from supporting customers' efforts to diversify sourcing and adapt to changing tariff regimes, potentially lifting demand for customs and managed supply chain solutions. Cost Flexibility and Lean Operations: Ongoing productivity initiatives and dynamic workforce planning are expected to help maintain or improve operating margins, even if freight demand remains subdued or volatile. Alex Johnson (Evercore ISI): Asked about weather-related disruptions and management's ability to handle them; executives described improved, proactive response due to new operating tools and said weather was a "non-event" for results. Jeff Kauffman (Vertical Research Partners): Probed on scenario planning in international forwarding given shifting tariffs; management outlined ongoing diversification away from China and increased customs activity. Brian Ossenbeck (JPMorgan): Inquired about April trends and truckload capacity exit; leadership noted typical seasonal patterns but said no inflection in market demand or capacity yet. Ken Hoexter (Bank of America): Asked about AGP (adjusted gross profit) trends and capital expenditure reduction; CFO clarified both were driven by tougher comps and reprioritization of discretionary spend, with strategic initiatives fully funded. Tom Wadewitz (UBS): Sought clarity on headcount declines and the company's approach to combining managed services and brokerage; management explained the impact of recent divestitures and detailed the new "One Robinson" strategy for integrated service offerings. In the coming quarters, the StockStory team will be watching (1) the pace of market share gains in core truckload and LTL segments, (2) the tangible margin benefits from continued automation and generative AI deployment, and (3) the company's ability to help customers navigate supply chain shifts amid ongoing tariff and trade disruptions. Additionally, the impact of the integrated managed solutions strategy on customer retention and wallet share will be a key signpost for future growth. C.H. Robinson Worldwide currently trades at a forward P/E ratio of 19.9×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Globe and Mail
01-05-2025
- Business
- Globe and Mail
C.H. Robinson Q1 Earnings Surpass Estimates, Increase Year Over Year
C.H. Robinson Worldwide, Inc. ( CHRW ) reported mixed first-quarter 2025 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Quarterly earnings per share (EPS) of $1.17 outpaced the Zacks Consensus Estimate of $1.02 and improved 36% year over year. Total revenues of $4.04 billion missed the Zacks Consensus Estimate of $4.31 billion and fell 8.2% year over year, owing to the divestiture of CHRW's Europe Surface Transportation business, lower volume in its North America truckload services, and lower pricing in the ocean services. Adjusted gross profits increased 2.3% year over year to $673.1 million, owing to higher adjusted gross profit per transaction in the company's truckload and LTL services. Adjusted operating margin of 26.3% increased 700 basis points from the year-ago reported quarter. Operating expenses decreased 6.5% year over year to $496.2 million. CHRW's president and chief executive officer, Dave Bozeman, stated, "Our first quarter results reflect progress in the disciplined execution of the strategies that we shared at our Investor Day in December — to take market share and expand our margins. We're not waiting for a market recovery to improve our financial results, and the strategies that the Robinson team is executing are relevant in any market environment." CHRW's Q1 Segmental Results North American Surface Transportation's total revenues were $2.86 billion (down 4.4% year over year) in the first quarter, owing tolower truckload volume, reflecting a decline in market demand for freight. The actual segmental sales figure was below our expectation of $2.97 billion. Adjusted gross profits of the segment grew 5.3% year over year to $418.32 million. Total revenues from Global Forwarding fell 9.8% year over year to $774.88 million, owing to lower pricing in the company's ocean services. The actual segmental sales figure was below our expectation of $906.4 million. Adjusted gross profits grew 2.5% year over year to $184.62 million. Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) decreased 27.1% year over year to $403.43 million. The actual segmental sales figure was below our expectation of $534.2 million. Below, we present the division of adjusted profits among the service lines (on an enterprise basis). Transportation: The unit (comprising Truckload, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $640.54million in the quarter under consideration, up 2.1% from the prior-year figure. Adjusted gross profits of Truckload, LTL, Ocean, Air and Customs grew 1.9%, 5.2%, 2.2%, 7.5% and 3.2%, year over year, respectively. Other logistics services declined adjusted gross profits by 8% year over year. Balance Sheet Data CHRW exited the first quarter with cash and cash equivalents of $129.94 million compared with $145.76 million at the end of the prior quarter. Long-term debt was $922.08 million compared with $921.85 million at the end of the prior quarter. CHRW generated $106.5 million of cash from operations in the first quarter compared with $33.3 million of cash used by operations in the prior-year quarter. The upside was owing to a $42.4 million increase in net income and a $136.8 million decrease in cash used by changes in net operating working capital. In the first quarter of 2025, CHRW returned $175 million of cash to shareholders, including $77.5 million in cash dividends and $97.5 million through share repurchases. Capital expenditures totaled $16.1 million in the reported quarter. CHRW's 2025 Outlook Capital expenditures for 2025 are now expected to be between $65 million and $75 million, down from the prior guided range of $75-$85 million. CHRW's Zacks Rank Currently, C.H. Robinson carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. We note that another major player from the Zacks Transportation – Services industry, Expeditors International of Washington EXPD, will report its first-quarter earnings numbers early next month. (See the Zacks Earnings Calendar to stay ahead of market-making news.) Expeditors, a leading third-party logistics provider, is based in Seattle, WA. EXPD currently has an Earnings ESP of +3.76% and a Zacks Rank of 3. The company is slated to report first-quarter 2025 results on May 6. While weak volumes (with respect to air-freight tonnage and ocean containers) stemming from soft demand and declining rates are likely to have hurt EXPD's performance, efforts to cut costs in the face of demand weakness are likely to have driven the bottom line. EXPD beat the Zacks Consensus Estimate in three of the last four quarters and matched estimates once, the average beat being 11.6%. Q1 Performances of Other Transportation Companies United Airlines United Airlines ' UAL first-quarter 2025 earnings per share (excluding 25 cents from non-recurring items) of 91 cents surpassed the Zacks Consensus Estimate of 75 cents. In the year-ago quarter, the Chicago-based airline reported a loss of 15 cents per share. Operating revenues of $13.21 billion marginally fell short of the Zacks Consensus Estimate of $13.22 billion. The top line increased 5.4% year over year despite the tariff-induced slowdown in domestic air travel demand. Passenger revenues (which accounted for 89.7% of the top line) rose 4.8% year over year to $11.9 billion. UAL flights transported 40,806 passengers in the first quarter, up 3.8% year over year. Delta Air Lines Delta Air Lines DAL reported first-quarter 2025 earnings (excluding 9 cents from non-recurring items) of 46 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents. Earnings increased 2.2% on a year-over-year basis due to low fuel costs. Revenues in the March-end quarter were $14.04 billion, surpassing the Zacks Consensus Estimate of $13.81 billion and increasing 2.1% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) rose 3.3% year over year to $13 billion. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
