C.H. Robinson Worldwide Inc.
) reported first quarter 2014 adjusted earnings per share of 63
cents, beating the Zacks Consensus Estimate by a penny. However,
adjusted earnings dropped 1.6% from 64 cents in the year-ago
Total revenue in the first quarter increased 5% year over year
to $3.14 billion, but missed the Zacks Consensus Estimate of
Total operating expenses increased 4.6% year over year to
$300.3 million in the first quarter, resulting in an operating
ratio (operating expenses as a percentage of net revenue) of
65.7%, down from 63.0%.
: The segment (comprising Truck, Intermodal, less-than-truckload,
Ocean, Air and Other logistics services) reported net revenue of
$457.2 million in the first quarter, up 0.3% from the year-ago
Net revenue from Truck (comprising truckload and
less-than-truckload services) grew 0.5% year over year to $269.8
million, attributable to increased volumes.
Net revenue from Intermodal fell 1.8% year over year to $8.9
Net revenue from Less-than Truckload (LTL) increased 2.8% year
over year to $60.1 million owing to increase in total shipments,
partially affected by a decline in net revenue
Net revenue from Ocean increased 2.6% year over year to $43.6
million. Air transportation net revenue grew 4.1% year over year
to $17.5 million while customs net revenue climbed 8.4% to $9.3
Net revenue from Other logistics services grew 8.0% year
over year to $18.6 million.
: The segment's net revenue decreased 15.7% year over year to
$26.8 million based on volume and net revenue decline from a
large client, unfavorable weather conditions and changes in
commodity and service mix.
: The segment saw gross revenue decline of 4.3% year over
year to $2.5 million due to divesture of T-Chek system.
Liquidity & Debt Position
C.H. Robinson ended the first quarter with cash and cash
equivalents of $142.8 million against $162.0 million in 2013 and
had $500.0 million in long-term debt on its balance sheet,
unchanged from last year. Cash from operations increased to $14.4
million at the end of the quarter from a negative $58.1 million a
We believe C.H. Robinson's asset light model with diversified
freight forwarding solutions provide earnings flexibility in an
economic downturn. However, factors like competitive freight
market with peers like
Expeditors International of Washington Inc.
JB Hunt Transport Services Inc.
), declining truckload market share and limited margin expansion
opportunities could restrict near-term growth. Further, the
increasing cost of transportation and volume loss from a large
sourcing client could also weigh on the stock in the coming
C.H. Robinson has Zacks Rank #3 (Hold).
Better-ranked stocks in this sector include
Dynagas LNG Partners LP
), which has a Zacks Rank #2 (Buy).
CH ROBINSON WWD (CHRW): Free Stock Analysis
DYNAGAS LNG PTR (DLNG): Free Stock Analysis
EXPEDITORS INTL (EXPD): Free Stock Analysis
HUNT (JB) TRANS (JBHT): Free Stock Analysis
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