C.H. Robinson beats Q3 expectations on strong execution

EDEN PRAIRIE, Minn. - C.H. Robinson Worldwide, Inc. (NASDAQ: NASDAQ:CHRW ) reported better-than-expected third quarter results, as the logistics company's new operating model drove improved execution and profitability despite a challenging freight market.

The company posted adjusted earnings per share of $1.28, surpassing analyst estimates of $1.15. Revenue rose 7% year-over-year to $4.64 billion, also topping expectations of $4.53 billion.

"I'm pleased with our third quarter results that reflect continued improvement in our execution, as we continue to deploy our new operating model," said C.H. Robinson's President and CEO Dave Bozeman. "We are raising the bar, even in a historically prolonged freight recession, with strong execution and disciplined volume growth across divisions while delivering exceptional service for our customers and carriers."

Gross profits increased 15.5% to $723.8 million, driven by higher adjusted gross profit per transaction in ocean and truckload services. The company's adjusted operating margin expanded 660 basis points to 24.5%.

In the North American Surface Transportation segment, adjusted gross profits rose 8.8% despite a 4.9% decline in revenues. The Global Forwarding segment saw revenues surge 58.7% and adjusted gross profits jump 38.1%, led by strength in ocean services.

C.H. Robinson said it remains on track to deliver over 30% compound growth in productivity over the two-year period from the end of 2022 to end of 2024. The company's average employee headcount declined 9.6% year-over-year as it optimized costs.

Looking ahead, C.H. Robinson now expects its full-year 2024 effective tax rate to be 18% to 20%, down from its previous outlook.

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Source: Investing.com