Why C.H. Robinson Worldwide Stock Drove Off the Road Today
C.H. Robinson Worldwide (NASDAQ: CHRW) has been battling through a tough demand and pricing environment, and its year-end results reflected it. Shares of the logistics company traded down 14% as of 1 p.m. ET Thursday after the company missed expectations.
C.H. Robinson is in the business of connecting shippers to those who need transport services. It manages about $22 billion in freight and 19 million shipments annually. But in 2023, with large businesses fretting over inflation and the health of the consumer, demand for the company's services fell, and pricing power evaporated.
Robinson earned $0.50 per share in the fourth quarter on revenue of $4.22 billion, falling short of Wall Street's consensus expectation for $0.81 per share in earnings on sales of $4.34 billion. Revenue was down 16.7% for the quarter and 28.7% for the year, with gross profit decreasing by 20% in the fourth quarter.
Source Fool.com
