Why CH Robinson Worldwide (CHRW) Stock Is Up Today

NEW YORK (TheStreet) -- CH Robinson Worldwide (CHRW) was gaining 5.1% to $58.82 Wednesday after beating analysts' estimates for earnings in the first quarter.

For the first quarter CH Robinson Worldwide posted earnings of 63 cents a share, beating the Capital IQ Consensus Estimate of 61 cents a share by 2 cents. Revenue grew 5% from the year-ago quarter to$3.14 billion. Analysts expected revenue of $3.18 billion for the quarter.

Truckload net revenue increased 0.5% from the year-ago quarter, and truckload volumes increased about 4%. North American truckload volumes grew about 3% in the quarter.

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TheStreet Ratings team rates C H ROBINSON WORLDWIDE INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate C H ROBINSON WORLDWIDE INC (CHRW) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CHRW's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 6.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Air Freight & Logistics industry and the overall market, C H ROBINSON WORLDWIDE INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • CHRW's debt-to-equity ratio of 0.93 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.27 is sturdy.
  • Net operating cash flow has decreased to $164.85 million or 14.66% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Air Freight & Logistics industry. The net income has significantly decreased by 63.7% when compared to the same quarter one year ago, falling from $256.39 million to $92.95 million.
  • You can view the full analysis from the report here: CHRW Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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