MAIN, GERMANY / ACCESSWIRE / July 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=CHRW, following the Company's posting of its second quarter fiscal 2017 earnings results on July 19, 2017. The Trucking Company surpassed revenue expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For the three months ended June 30, 2017, C.H. Robinson's total revenues grew 12.4% to $3.71 billion compared to revenue of $3.30 billion in Q2 2016. The increase in total revenues was driven by volume growth across all of the Company's transportation services. C.H. Robinson total net revenues fell 3.4% in the reported quarter compared to the prior year same quarter. The Company's revenue numbers came ahead of analysts' expectations of $3.64 billion.
For Q2 2017, C.H. Robinson's total operating expenses increased 8.7% to $3.53 billion. The Company's personnel expenses increased 5.2% to $284.22 million in the reported quarter as a result of an increase in average headcount of 8.1% in Q2 2017 and partially offset by decreased expenses related to variable incentive plans. Other selling, general, and administrative expenses increased 19.4% on a y-o-y basis to $107.75 million.
C.H. Robinson reported net income of $111.07 million, or $0.78 per diluted share, compared to net income of $143.09 million, or $1.00 per share, in Q2 2016. The Eden Prairie, Minnesota-based Company's earnings results did not meet Wall Street's expectations of $0.90 per share.
Segment Results
During Q2 2017, C.H. Robinson's North American Surface Transportation (NAST) segment's total revenues increased 10.3% to $2.4 billion compared to $2.2 billion in Q2 2017, driven by volume increases in all services.
- NAST truckload's net revenues decreased 14.1% to $250.0 million in Q2 2017 compared to $291.1 million in Q2 2016, while truckload's volumes increased approximately 8% on a y-o-y basis. NAST less than truckload (LTL)'s net revenues increased 2.1% to $97.1 million in the reported quarter compared to $95.1 million in the prior year's corresponding quarter. NAST LTL's volumes increased approximately 6.5% on a y-o-y basis in Q2 2017.
- For Q2 2017, NAST intermodal's net revenues fell 6.3% to $7.8 million compared to $8.3 million in Q2 2016. The segment's operating expenses dropped 1.5% in the reported quarter to $219.6 million versus $216.5 million in prior year's comparable quarter, due to increases in selling, general, and administrative expenses, and partially offset by a small decrease in personnel expenses.
During Q2 2017, C.H. Robinson's Global Forwarding segment's total revenues surged 48.2% to $528.8 million from $356.8 million in Q2 2016. The segment's net revenues jumped 24.5% to $121.0 million in the reported quarter compared to $97.2 million in the prior year's same quarter.
- Global Forwarding Ocean division's net revenues increased 22.0% to $73.2 million in Q2 2017 compared to $60.0 million in Q2 2016.
- Global Forwarding Air division's net revenues soared 31.0% to $24.5 million in Q2 2017 compared to $18.7 million in Q2 2016, while Customs' net revenues jumped 40.6% to $16.3 million in Q2 2017 compared to $11.6 million in Q2 2016.
The Global Forwarding segment's operating expenses increased 24.8% in Q2 2017 to $93.3 million from $74.8 million in Q2 2016, driven by an average headcount increase of 14.4% and the acquisition amortization related to the acquisition of APC.
The Company's Robinson Fresh segment's total revenues decreased 0.5% to $657.0 million in Q2 2017 from $660.2 million in Q2 2016. Robinson Fresh's net revenues decreased 10.3% to $60.8 million in Q2 2017 compared to $67.8 million in Q2 2016 as a result of declines in transportation and sourcing net revenues.
During Q2 2017, Robinson Fresh's sourcing net revenues fell 6.8% to $35.1 million in Q2 2017 compared to $37.7 million in Q2 2016. This was primarily the result of lower net revenue per case as sourcing revenues and costs declined at the same rate. The segment's net revenues dropped 14.6% to $25.7 million in the reported quarter compared to $30.1 million in the prior year's same quarter, primarily due to decreases in truckload revenue. Robinson Fresh's operating expenses increased 15.0% in Q2 2017 to $46.6 million from $40.5 million in Q2 2016. This was primarily due to an increase in claims expenses, warehousing expenses related to expanding facilities, and an increase in average headcount.
C.H. Robinson's Managed Services' net revenues increased 15.1% in Q2 2017 to $18.2 million compared to $15.8 million in Q2 2016. This increase was a result of new business with new and existing customers. Other surface transportation net revenues decreased 2.4% in the reported quarter to $13.9 million compared to $14.2 million in the prior year's corresponding quarter.
Cash Matters
C.H. Robinson finished the quarter with $273.18 million in cash, while its debt balance was slightly above $1.3 billion. For FY17, the Company is expecting capital expenditure to be in the range of $60 million to $70 million, the majority of which relates to continued investments in IT.
During Q2 2017, C.H. Robinson returned approximately $106 million to shareholders in the form of approximately $64 million in dividends and approximately $42 million in share repurchases.
Stock Performance
At the close of trading session on Friday, July 21, 2017, C.H. Robinson's stock price marginally rose 0.85% to end the day at $65.56. A total volume of 3.16 million shares were exchanged during the session, which was above the 3-month average volume of 1.60 million shares. The Company's shares are trading at a PE ratio of 18.10 and have a dividend yield of 2.75%. At Friday's closing price, the stock's net capitalization stands at $9.14 billion.
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