Total first-quarter revenue for C.H. Robinson was down 8.3%, to just over $4 billion, according to an earnings report released Wednesday afternoon. But income from operations rose to $176.9 million from $137.1 million, an increase of 39.1%.
Diluted earnings per share were $1.11. Non-GAAP earnings were $1.17 per share. That is more than what SeekingAlpha said was the consensus forecast of $1.05. However, SeekingAlpha also said the consensus estimate on revenue was $4.25 billion, and C.H. Robinson (NASDAQ: CHRW) came in just over $4 billion.
Additionally, comparisons are now 1 year old against the first-quarter 2024 earnings report from the brokerage, when strong sequential growth in the company set off a surge in the stock price that caught many short sellers on the wrong side of the movement – the 3PL was listed by SeekingAlpha at the time as one of the most shorted stocks in the S&P 500 – and marked the first clear impact of the management of CEO Dave Bozeman, who started on the job in late June 2023.
The adjusted operating margin – which is the company’s income from operations as a percentage of adjusted gross profit – was 26.3%. That was 700 basis points more than a year ago.
Adjusted gross profits in every service line except one rose. The smallest gain came in truckload, 1.9%; the largest was in air, 7.5%. The overall adjusted gross profit for all transportation services, including a category of Other Logistics Services (which had a decline of 8% in adjusted gross profit), rose 2.1%.
The cost of purchased transportation and related services fell 10.8%, to just over $3 billion.
“In our North American Surface Transportation (NAST) business, we outgrew the market in both truckload and less than truckload while expanding gross margins and improving productivity — both year-over-year and sequentially,” Bozeman said in prepared remarks released with the earnings.
He has made technology as well as internal practices the core of his management. He referred to it in his prepared statement. C.H. Robinson, he said, continues “to arm our industry-leading talent with innovative tools that help us materially elevate the customer and carrier experience. We are innovating to harness the power of artificial intelligence and driving automation across the full lifecycle of a load, which gives our customers better service, while also helping us improve our performance by automating tasks that free up our talented people to work on more strategic and higher value work.”
.The company’s earnings call with analysts is scheduled for 5 p.m. EDT Wednesday.
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