Why CH Robinson Worldwide (CHRW) Tumbled in Extended Trading

NEW YORK (TheStreet) -- Logistics company CH Robinson Worldwide (CHRW) reported weaker-than-expected earnings for the fourth quarter ended December, sending shares tumbling in extended trading Tuesday.

After the bell, shares tumbled 8.4% to $53.73.

The Minnesota-based company reported quarterly earnings of 62 cents a share on $3.15 billion in revenue. Analysts surveyed by Thomson Reuters had expected earnings of 68 cents a share on $3.27 billion.

Truckload net revenues dropped 5.6% year-over-year, while truckload volumes increased around 7%. Intermodal net revenue increased 9.4%, due to increased revenue margin, offset by decreased volumes. Ocean and air transportation net revenues were up 37.6% and 12.8%, respectively.

Over fiscal 2013, per-share earnings of $2.65 missed consensus by 6 cents. Revenue of $12.75 billion, though a 12% year-over-year increase, fell short of expectations by $117 million.

TheStreet Ratings team rates C H ROBINSON WORLDWIDE INC as a Buy with a ratings score of B-. The team has this to say about their recommendation:

"We rate C H ROBINSON WORLDWIDE INC (CHRW) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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