First look: C.H. Robinson again is strong, and Wall Street throws roses
The financial performance of C.H. Robinson (NASDAQ: CHRW) continued to rip higher in the third quarter, with various levels of profitability and performance improved even as there was no sign of a market turnaround as measured by some of the company’s data.
Wall Street, which already has made C.H. Robinson an investment darling–up about 30% in just the last three months alone, and about 20% in the last year–sent the stock soaring in the first hour after the earnings release. At approximately 4:30 pm EDT, C.H. Robinson stock was up about 12.2% to $145.20, a gain of more than $15.80 since its close just one half hour before.
The company’s ability to churn out profits even as revenue was stagnant or lower was stark in the earnings report.
North American Surface Transport, the core truck brokerage business at C.H. Robinson, reported only a 1.06% revenue gain from a year ago, and a decline of 1.63% from the second quarter. But adjusted gross profits for NAST were up about 5.6% from a year earlier, though they were down 2.75% from the second quarter, exceeding the drop in revenue.
The Global Forwarding business reported a 31% drop in revenues, but only an 18.2% drop in gross profits compared to a year ago.
The total transportation line for the company showed an adjusted gross profit decline of 4.47% from a year ago, and a 2.58% drop sequentially.
But even as some various service lines did show weakness compared to a year earlier, the overall financial picture at C.H. Robinson remained solid. Income from operations was up 22.6%. The adjusted operating margin was up 680 basis points to 31.3%. Adjusted diluted earnings per share rose 9.4% to $1.40. Cash generated was up $167.4 million to $275.4 million.
Specific volume numbers are not revealed by C.H. Robinson. But in the company’s prepared statement released in conjunction with the earnings, the company said at NAST, combined truckload and LTL volume was up 3% compared to 2024 and “demonstrably grew market share” against a decline in the Cass Freight Shipment Index.
The company will hold its earnings call Wednesday at 5:30 pm EDT.
As this chart shows, C.H. Robinson is also continuing to shed workers.
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