CH Robinson Stock Drops as Logistics Company Delivers Q4 Earnings Miss—Key Levels to Watch
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Key Takeaways
C.H. Robinson shares traded sharply lower Thursday morning after the logistics giant fell short of analysts’ fourth-quarter earnings and sales estimates.
The company’s top line came under pressure from waning freight volumes and excess capacity, which suppressed transportation rates.
The C.H. Robinson share price may find chart support from the November swing low around $80.
C.H. Robinson Worldwide, Inc.
Source: TradingView.com.
Shares in logistics giant C.H. Robinson Worldwide (
CHRW
) fell sharply in early trading Thursday as slumping freight demand weighed on the company’s quarterly results.
The company reported fourth-quarter
adjusted earnings
of 50 cents per share, considerably less than the 81 cents per share analysts had expected. Revenue also disappointed, coming in at $4.2 billion, contracting 17% from the December 2022 quarter and falling short of the consensus estimate pegged at $4.34 billion.
The top line came under pressure during the period from waning freight volumes and excess capacity, both of which suppressed transportation rates.
“Our fourth-quarter results did not meet our expectations as we continue to battle through a poor demand and pricing environment,” C.H. Robinson’s CEO Dave Bozeman said. “Weak freight demand in an elongated market trough, combined with excess carrier capacity, continued to result in a very competitive market,” he added.
By
segment
, the company’s North American Surface Transportation division, which accounts for over half of total revenue, posted an adjusted gross profit of $380.2 million in the quarter, down 24.3% year-over-year (YOY). The freight giant’s Global Forwarding unit saw adjusted gross profit slide 14% from the prior year to $162,322. Furthermore, revenue in each segment declined 16- and 30%, respectively, from the corresponding year’s quarter.
The CHRW share price broke down from an 11-month
trading range
in early September before bottoming out just below $80. A recent
countertrend
rally came to an abrupt end on Wednesday, with the stock closing convincingly below the
50-day moving average
on higher than average share turnover. If the price succumbs to further earnings-driven weakness, monitor the November
swing low
as a potential area of chart support.
D.H. Robinson shares were down 8.7% at $76.76 about 5 minutes after the opening bell Thursday. The stock has lost about a quarter of its value over the past year.
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As of the date this article was written, the author does not own any of the above securities.
