C.H. Robinson Worldwide Inc. (CHRW), one of the largest transportation logistics firm in North America, Tuesday reported an increase in profit for the second quarter, driven mainly by higher truckload revenues. Earnings for the quarter trumped Wall Street estimates, although revenues fell short. Shares of C.H. Robinson were up about 5 percent in after-hours trade on the Nasdaq, following the news.
Eden Prairie, Minnesota-based C.H. Robinson's second-quarter profit rose to $137.2 million or $0.94 per share from $118.6 million or $0.80 per share last year. On average, 29 analysts polled by Thomson Reuters expected earnings of $0.86 per share for the quarter. Analysts' estimates typically exclude special items.
The trucking and transport company's revenues for the second quarter rose 1.2 percent to $3.55 billion from $3.50 billion a year ago. Analysts had a consensus revenue estimate of $3.69 billion for the quarter.
Truckload revenues increased 8.6 percent in the quarter, with revenue margin improving from a year ago driven by lower fuel costs.
Although, operating expenses increased 10.7 percent to $354.9 million, as a percentage of revenues expenses dropped to 60.8 percent from 61.5 percent a year ago.
Commenting on results, CEO John Wiehoff said, "We had a great quarter with strong net revenue and net income growth across our network. Our employees worked very hard, serving our customers, carriers, and suppliers with a focus on excellence and improving every day."
CHRW closed Tuesday's trading at $66.73, up $1.97 or 3.04%. The stock further gained $3.27 or 4.90%, in the after-hours trade.
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