Plus: New Mexico tops winter crash rates, Freight Essentials files a RICO case against WWEX, C.H. Robinson partners with Highway to combat fraud, and more.
"The study shows where truck drivers face the most threat in winter. Icy roads and poor visibility not only put lives at risk but also disrupt critical supply chains during the festive season."
We're shedding light on the Q3 2023 earnings reports from major freight and logistics players: C.H. Robinson, Werner Enterprises, and Schneider National. Each reveals unique challenges and strategies, with some navigating better than others amidst a turbulent market landscape. Cost-cutting, acquisitions, and changing investor sentiment form the backdrop, while smaller entities like Trimble and Nikola provide contrasting narratives.
C.H. Robinson Worldwide, Inc. (CHRW) -52.8% EPS YoY
Key Metrics: Revenue down 27.8% compared to the third quarter of the previous year. Gross profits decreased by almost 29%. Total operating expenses decreased by 13.1%, while income from operations fell by 60.5%.
Post-market Price: Rose by almost 4% in the first hour after the earnings release.
Investor Sentiment: Wall Street reacted positively to the earnings, appreciating cost-cutting measures. However, Deutsche Bank's Amit Mehrotra expressed skepticism, questioning the true impact of these reductions on revenue and profitability.
Werner Enterprises (WERN) -53% EPS YoY
Key Metrics: Experienced a slight 1.2% decrease in revenue YoY. Adjusted operating income was $42 million, a decrease of 47% YoY.
Logistics Metrics: Revenue increased by 23% to $230.3 million, primarily attributed to truckload logistics operations revenue, which saw a 48% rise due to the ReedTMS acquisition in November 2022.
Investor Sentiment: Mixed due to EPS falling short of expectations. Analysts have revised their earnings downwards for the upcoming period, and the stock has seen a significant fall over the last three months, trading near its 52-week low. Despite a challenging freight environment, CEO Derek Leathers described Werner's business model as durable and resilient.
Schneider National (SNDR) -71.43% EPS YoY
Key Metrics: Big earnings miss reported. Q3 2023 sales of $1,352 million, down 19.3% YoY, with ongoing price pressures and challenges like fuel and bad debt impacting operating income. Income from operations has seen a significant decline of 68%
Logistics Metrics: Revenue decreased by 30% YoY to $326 million, with brokerage loads experiencing an 11% decline.
Investor Sentiment: With Schneider cutting its 2023 EPS guidance by 22% from last quarter's forecast, investor sentiment will likely be negative. Additionally, the company expects 2024 to be a "transition year."
Quick Hits:
Trimble (TRMB): Q3 transportation revenue rose to $196.6 million, a 35% y/y increase, with earnings of 68 cents per share, beating Wall Street's expectations.
Nikola (NKLA): Net loss of $425.8 million– an increase of 80.3% YoY– after recalling all 209 battery-powered trucks, shipping only three trucks compared to 63 the previous year.
Hi! I'm Adriana and I've been working for FreightCaviar as Head Writer for a little over a year now. Some of my favorite topics to cover are FreightTech, Green Freight, and nearshoring/reshoring.
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