C.H. Robinson (CHRW 72.98, -4.72) is down 6.1% despite beating earnings and revenue expectations for the first quarter. The company made some cautious comment about second quarter trends, which has contributed to the weakness in the stock.
The logistics and supply chain management provider reported above-consensus earnings of $0.86 per share on an 11.1% year-over-year increase in revenue to $3.42 billion, which was also better than expected. Volume growth across the company's transportation services fueled the increase in total revenue.
Looking at the segment breakdown, North American Surface Transportation total revenue increased 10.5% year-over-year to $2.26 billion. However, net revenue declined 3.0% to $372.44 million. Truckload net revenue fell 5.7% to $267.60 million despite an 11.0% increase in truckload volumes. Net revenue margin declined to 16.49% from 18.76% due to lower customer pricing. North American truckload rate per mile, excluding fuel, declined 4.0% while truckload transportation costs decreased 2.0%.
Global forwarding total revenue jumped 33.5% year-over-year to $468.79 million while net revenue increased 14.7% to $106.55 million. Segment net revenue margin declined to 22.73% from 26.45%.
Robinson Fresh total revenue declined 2.4% to $550.45 million, which was fairly consistent with a 2.3% decline in net revenue to $56.84 million. Segment net revenue margin was little changed, ticking up to 10.33% from 10.31%.
While the Dow component beat earnings and revenue expectations, company management noted that total company net revenue per day declined about 4.0% year-over-year in April. However, truckload volume growth was consistent with first quarter trends.
Today's decline places C.H. Robinson right below its 200-day moving average (73.28), leaving the stock at a level not seen since the middle of January.