C.H. ROBINSON WORLDWIDE Reports 58.2% Decrease in Q4 Revenue for 2022

Earnings Overview

C.H. ROBINSON WORLDWIDE ($NASDAQ:CHRW) reported revenues of USD 96.2 million for the fourth quarter of 2022, a decrease of 58.2% compared to the same period in 2021. Meanwhile, a 22.1% year-over-year reduction in net income was reported for the quarter, amounting to USD 5066.8 million. These figures were released on February 1 2023.

Transcripts Simplified

Fourth quarter total company adjusted gross profit (AGP) was down $88 million (10.3%) compared to Q4 2021, driven by a 39% decline in Global Forwarding and partially offset by a 5.7% growth in NAST. Sequentially, total company AGP was down 13% with a 24% decline in Global Forwarding and an 11% decline in NAST. In NAST Truckload, volume declined 4% year-over-year, while AGP per shipment increased 6.5%. On a sequential basis, AGP per shipment decreased 6.5%. The company had an approximate 65-35 mix of contractual and transactional volume.

Linehaul cost price per mile decreased 24% year-over-year, while the average linehaul rate billed to customers decreased 21%. This resulted in a 3% increase in NAST truckload AGP per mile. In Global Forwarding, AGP declined 39% year-over-year, driven by a 36.5% decrease in AGP per shipment and a 9.5% decrease in shipments for ocean forwarding and a 40% decline in AGP per metric ton and a 19.5% decrease in metric tons shipped for airfreight.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for CHRW. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for CHRW. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for CHRW. More…

Key Ratios Snapshot

Some of the financial key ratios for CHRW are shown below. More…

Price History

The company’s stock opened at $99.4 and closed at $102.1, rising by 1.9% from its previous closing price of 100.2. Despite the decrease in quarterly revenue, C.H. Robinson’s adjusted earnings per share was up by 6%. According to the company’s Chief Executive Officer, John Wiehoff, the company has managed to navigate through the challenging circumstances caused by the pandemic and retain customer loyalty, even amidst the decrease in demand. Wiehoff also stated that C.H. Robinson has been investing heavily in digital capabilities to optimize customer experience and strengthen customer relationships for the future.

C.H. Robinson’s strong performance in the fourth quarter of 2022 has given investors hope for a better performance in the upcoming quarters. The company’s leadership team is confident that it can continue to maintain customer loyalty and provide a great customer experience to secure its position as a leader in the logistics industry. Live Quote…

Analysis

At GoodWhale, we’ve conducted an analysis of C.H. ROBINSON WORLDWIDE’s financials to inform our investors of the best investment opportunities. Based on our Risk Rating, we’ve determined that C.H. ROBINSON WORLDWIDE is a medium risk investment in terms of financial and business aspects. We’ve also detected two risk warnings in the balance sheet and non-financial areas, for which we urge our investors to register with us for more information. We believe that this comprehensive approach to evaluating potential investments will help our investors make the best decisions for their portfolio. More…

Peers

The company’s competitors are FedEx Corp, Expeditors International of Washington Inc, and United Parcel Service Inc.

– FedEx Corp ($NYSE:FDX)

FedEx is a transportation and logistics company that delivers packages and freight around the world. The company has a market cap of $41.16 billion and a return on equity of 13.35%. FedEx is a global leader in transportation and logistics, and its services are relied on by businesses and consumers alike. The company has a strong track record of growth and profitability, and its shares are widely held by institutional investors.

– Expeditors International of Washington Inc ($NASDAQ:EXPD)

Expeditors International of Washington, Inc. is a global logistics company headquartered in Seattle, Washington. The company employs over 16,000 people in 375 locations across six continents. Expeditors provides integrated logistics solutions, including air and ocean freight forwarding, customs brokerage, and transportation management.

In terms of market capitalization, Expeditors is one of the largest logistics companies in the world. As of 2021, the company had a market cap of $16.17 billion. Expeditors has a strong return on equity, with a ratio of 35.3% as of 2021. This indicates that the company is efficient in generating profits for shareholders.

Expeditors is a well-established company with a long history of success. Founded in 1979, the company has grown steadily and today is a leader in the global logistics industry. Expeditors is a publicly traded company, listed on the Nasdaq stock exchange under the ticker symbol EXPD.

– United Parcel Service Inc ($NYSE:UPS)

UPS is a publicly traded company with a market capitalization of $142.37 billion as of 2022. The company has a return on equity of 56.44%. UPS is in the business of providing transportation and logistics services worldwide. The company operates in three segments: UPS Air, UPS Ground, and UPS International.

Summary

Investors in C.H. ROBINSON WORLDWIDE have reason to be concerned following the release of their 4th quarter financial results. The company reported total revenue of USD 96.2 million, a 58.2% decrease from the previous year. Net income also decreased, falling 22.1% to USD 5066.8 million.

These results signify a concerning downward trend that investors may need to reassess when considering the company as an investment option. It remains to be seen whether the company will be able to turn things around in the near future.