C.H. Robinson Worldwide (CHRW +0.74%) stock motored ahead 20.4% through 12:50 p.m. ET Thursday despite the freight transport and logistics company reporting mixed results last night.
Heading into its Q3 report, analysts forecast Robinson would earn $1.30 per share on more than $4.2 billion in sales. In fact, while non-GAAP (generally accepted accounting principles) earnings were a better-than-expected $1.40, sales missed expectations at $4.1 billion.
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C.H. Robinson's Q3 earnings
Robinson began its report on a down note, warning of "a continued soft freight environment," and CEO Dave Bozeman colorfully commented, "Truckload spot rates continue to bounce along the bottom due to low demand," while internationally, shipping has been disrupted by "front-loading" orders to avoid tariffs, leading to "dislocation of shipments."
"This is a new C.H. Robinson," however, said Bozeman, "and we don't use the macro environment as an excuse" for missing numbers. Revenue may have fallen 11%, but Robinson offset that decline by cutting operating costs more than 12%. As a result, Robinson succeeded in growing net profit by 68%.
In addition to beating on non-GAAP numbers, Robinson delivered a $1.34 per-share profit as calculated according to GAAP.
NASDAQ: CHRW
Key Data Points
Is C.H. Robinson Worldwide stock a buy?
2025's not done yet, but looking ahead, Robinson also raised guidance for 2026, with CFO Damon Lee predicting Robinson could conceivably earn as much as $6 a share next year as it captures market share and continues to expand profit margins.
At its current $155 stock price, that works out to about a 26 times forward earnings valuation on the stock. For a commodity transport company pegged for only low-teens earnings growth over the next five years, that seems a bit expensive to me. Despite last night's earnings win, I can't yet call this stock a buy.
