C. H. Robinson Tumbles Most in 18 Months as Trucking Rates Sagby
C.H. Robinson Worldwide Inc. fell the most in 18 months after the arranger of freight shipments said a decline in revenue that weighed on second-quarter results continued into July.
Sales dropped 6.9 percent to $3.3 billion in the quarter, compared with analysts’ average estimate of $3.44 billion. Intermodal revenue plunged 22 percent as volumes decreased 13 percent, the company said Wednesday on a conference call.
Net revenue was down 2 percent this month even as truckload volumes increased, Chief Financial Officer Andrew C. Clarke said on the call. Contractual wins haven’t been enough to offset a sluggish transportation sector.
"Low truckload pricing and available truckload capacity environment will be a headwind for the business into the third quarter," Clarke said.
The company’s feeble outlook is another sign of weakness in trucking. J.B. Hunt Transport Services Inc., the largest trucker by market value, fell the most in four years last week after lowering its growth forecast for sales and profit amid a decline in freight rates.
C.H. Robinson declined 4.7 percent to $68.75 at 12:29 p.m. in New York, after dropping to an intraday low of $66.62. The shares had gained 16 percent this year through Tuesday.
“We sense the strong run in better brokerage results may be coming to an end,” said Barclays Plc analyst Brandon R. Oglenski in a research note. “We see relative value in CHRW shares but note upside will likely be more difficult in the near-term."
C.H. Robinson’s earnings of $1 a share matched analysts’ estimates.