C.H. Robinson Worldwide (CHRW) shares delivered major gains after the freight transportation and logistics firm posted better-than-expected quarterly profits, boosted by the implementation of a new, cost-efficient operating model. The second quarter of 2024 marked the second consecutive period that the supply chain specialist has exceeded earnings forecasts.
The company reported second-quarter adjusted earnings per share (EPS) of $1.15, up 25% year over year and well ahead of the consensus estimate of 95 cents listed by Zacks Equities Research. Total revenue of $4.5 billion marked a 1.4% increase from a year ago and essentially matched analysts’ estimates.
The strong performance came despite significant operational challenges facing the transportation industry. Uncertain economic conditions have led many large shipping customers to scale back their business, which translates to lower demand for companies like C.H. Robinson.
Although the company saw year-over-year declines in pricing for its truckload services, higher prices for its ocean services helped drive …