Why Is C.H. Robinson (CHRW) Up 3% Since Last Earnings Report?

A month has gone by since the last earnings report for C.H. Robinson Worldwide (CHRW). Shares have added about 3% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is C.H. Robinson due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for C.H. Robinson Worldwide, Inc. before we dive into how investors and analysts have reacted as of late.C.H. Robinson Beats on Q2 EarningsC.H. Robinson reported mixed third-quarter 2025 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.Quarterly earnings per share  of $1.40 outpaced the Zacks Consensus Estimate of $1.29 and improved 9.3% year over year. Total revenues of $4.14 billion missed the Zacks Consensus Estimate of $4.29 billion and fell 10.9% year over year, owing to the divestiture of CHRW’s Europe Surface Transportation business, lower pricing and volume in the ocean services, and lower pricing in the truckload services. This was partially offset by higher volume in the truckload services.In the third quarter, CHRW witnessed sustained outperformance on the back of disciplined execution of the company's strategic initiatives which led to solid market share gains, gross margin expansion, and higher operating margins.Adjusted gross profits fell 4% year over year to $706.1 million, owing to lower adjusted gross profit per transaction and volume in the company’s ocean services and the divestiture of its Europe Surface Transportation business. This was partially offset by higher adjusted gross profit per transaction in the less than truckload (LTL) and customs services and higher volume in the truckload services.Adjusted operating margin of 31.3% increased 680 basis points from the year-ago reported quarter. Operating expenses declined 12.6% year over year to $485.2 million.CHRW’s Q3 Segmental ResultsNorth American Surface Transportation’s total revenues were $2.96 billion (up 1.1% year over year) in the third quarter, owing tohigher volumes in both the truckload and LTL services, partially offset by lower pricing in truckload services. Adjusted gross profits of the segment grew 5.6% year over year to $444.14 million.Total revenues from Global Forwarding fell 31.1% year over year to $786.34 million, owing to lower pricing and volume in the company’s ocean services. Adjusted gross profits fell 18.3% to $191.75 million.Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) decreased 32.4% year over year to $384.80 million.Below, we present the division of adjusted profits among the service lines (on an enterprise basis).Transportation: The unit (comprising Truckload, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $670.85 million in the quarter under consideration, down 4.5% from the prior-year figure.Adjusted gross profits of LTL, Air, Customs and Other logistics services grew 10.5%, 5.7%, 28.6% and 3.8%, year over year, respectively. Truckload and Ocean services declined adjusted gross profits by 2% and 32.4%, year over year, respectively.Balance-Sheet DataCHRW exited the third quarter with cash and cash equivalents of $136.83 million compared with $155.99 million at the end of the prior quarter. Long-term debt was $1.18 billion compared with $922.31 million at the end of the prior quarter.CHRW generated $275.4 million of cash from operations in the third quarter of 2025, up from $108.1 million generated in the year-ago quarter. The $167.4 million increase in cash flow from operations was owing to a $65.8 million increase in net income and a $144.5 million decrease in cash used by changes in net operating working capital.In the third quarter of 2025, CHRW returned $189.6 million to shareholders which includes $74.7 million of dividend payments and $114.9 million in the form of share repurchases.Capital expenditures totaled $18.6 million in the reported quarter.For 2025, CHRW continues to expect capital expenditures between $65 million and $75 million.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.The consensus estimate has shifted -5.37% due to these changes.VGM ScoresAt this time, C.H. Robinson has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, C.H. Robinson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. 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(CHRW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks