C.H. Robinson Worldwide Q1 Profit Falls 3%, Misses Estimates (CHRW)

After the close on Tuesday, logistics company C.H. Robinson Worldwide, Inc. (CHRW) reported a decline in first quarter profit as higher expenses offset 17% revenue growth. Shares plummeted in pre-market trading as earnings came up short of analysts’ expectations.

The Eden Prairie, Minnesota-based company posted a first quarter profit of $103.3 million, or 64 cents per share, down from $106.5 million, or 65 cents per share, earned in the same period a year ago.

On average, analysts were expecting the company to earn 69 cents per share, according to those polled by Thomson Reuters.

C.H. Robinson’s total quarterly revenue rose 17% to $2.99 billion from $2.55 billion last year. Analysts were expecting revenue of $2.98 billion.

Total transportation revenue increased as well, coming in 15% higher at $421.25 million. Truckload revenue rose 2% and ocean transportation revenue more than double from the year ago period.

However, operating expenses for the quarter rose 17% as well, coming in at $287.02 million; this was mostly due to the operations at the company’s new acquisition of Phoenix. Total costs and expenses rose 19% to $2.83 billion, which put downward pressure on earnings.

John Wiehoff, CEO of C.H. Robinson said, “Our results for the first quarter of 2013 reflect the slower growth and continued margin contraction that we have seen in the markets we serve. They also reflect our continued investments in our future and adjusting to the changes we see.”

C.H. Robinson shares were down $3.94, or -6.40%, during pre-market trading on Wednesday. The stock is down -2.63% year-to-date.

The Bottom Line
Shares of C.H. Robinson (CHRW) have a dividend yield of 2.27% based on last night’s closing price of $61.56 and the company’s annualized dividend payout of $1.40 per share.

C.H. Robinson Worldwide, Inc. (CHRW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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