C.H. Robinson’s EPS beat analyst expectations in Q4 2016

Despite surpassing analyst projections, C.H. Robinson’s earnings per share for the quarter were still lower than in Q4 2015, but revenues increased 6.4 percent year-over-year due to volumes growth across all services.    C.H. Robinson’s net income for the fourth quarter of 2016 totaled $122.3 million, slipping 3.4 percent from the fourth quarter of 2015, according to the company’s latest financial statements.
   However, the Eden Prairie, Minn.-based third-party logistics provider’s earnings per share (EPS) for the quarter surpassed expectations, reaching $0.86 per share, with Stifel projecting EPS of $0.85 and Zacks anticipating EPS of $0.84 for the company.
   C.H. Robinson’s EPS for the quarter was still lower from a year prior, when the company’s EPS totaled $0.88.
   Total revenues for the quarter increased 6.4 percent year-over-year to $3.4 billion, driven by volumes growth across all services, the company said.

   C.H. Robinson’s personnel headcount for each segment during the quarter compared to a year prior was as follows:
     • North American Surface Transportation headcount totaled 6,809, up 1.9 percent;
     • Global Forwarding headcount totaled 3,934, up 13.9 percent;
     • Robinson Fresh headcount totaled 951, up 4.3 percent;
     • And “All Other and Corporate” headcount totaled 2,380, up 12.9 percent.

   The Global Forwarding segment saw growth in Q4 2016 compared to a year prior, as the acquisition of APC Logistics in 2016 largely contributed to the segment’s increase in net revenues and headcount.
   For the full year of 2016, C.H. Robinson increased net income 0.7 percent from 2015 to $513.4 million, while revenues slipped 2.5 percent year-over-year to $13.1 billion. EPS for 2016 totaled $3.59 compared to $3.51 per share for 2015.
   Looking ahead, C.H. Robinson said the APC integration is a top priority.
   Stifel is decreasing its 2017 and 2018 EPS estimates for C.H. Robinson from $3.79 and $4.15 to $3.70 and $4.00, respectively. “The EPS reductions are primarily a function of margin deterioration in the truckload brokerage segment, wherein pricing remains challenged in the near term and spot market supply has slightly tightened,” Stifel said.