CH Robinson Worldwide Earnings: Here’s Why Investors Don’t Like These Results

CH Robinson Worldwide Inc. (NASDAQ:CHRW) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4.17%.

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CH Robinson Worldwide Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 1.54% to $0.64 2994.3 in the quarter versus EPS of $0.65 in the year-earlier quarter.

Revenue: Rose 17.33% to $2.99 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CH Robinson Worldwide Inc. reported adjusted EPS income of $0.64 per share. By that measure, the company missed the mean analyst estimate of $0.69. It beat the average revenue estimate of $2.98 billion.

Quoting Management: “Our results for the first quarter of 2013 reflect the slower growth and continued margin contraction that we have seen in the markets we serve. They also reflect our continued investments in our future and adjusting to the changes we see. We remain positive in our long term performance outlook. Our investments, including the acquisitions executed last year, continue to drive our revenue growth and ability to service the global supply chain needs of our customers,” said John P. Wiehoff, chairman and chief executive officer of C.H. Robinson.

Key Stats (on next page)…

Revenue increased 0.79% from $2.97 billion in the previous quarter. EPS decreased 5.88% from $0.68 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.79 to a profit $0.78. For the current year, the average estimate has moved down from a profit of $3.11 to a profit of $3.06 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)