Tight profit margins in the highly competitive trucking business continue to hit C.H. Robinson.
However, by winning market share across the company's business segments, it was able to beat analysts' expectations for the first quarter.
The Eden Prairie-based company saw first-quarter revenue increase 11.1 percent to $3.4 billion, net income increase 2.6 percent to $122.1 million and earnings per share increase 3.6 percent to 86 cents per share.
Analysts polled by Thomson Reuters expected the company to earn 81 cents per share on revenue of $3.3 billion.
CEO John Wiehoff has told analysts and investors for several quarters that the company has been operating in "a tough part of the margin cycle in the North American truckload business."
So despite shipping volume increasing 13 percent, increased trucking capacity in the industry, increased costs and lower pricing caused profit margins to decrease.
The third-party logistics provider released its earnings after the market closed on Tuesday and had a conference call to discuss results on Wednesday morning.
The North American Surface Transportation segment saw revenue increase 10.5 percent to $2.3 billion. The Robinson Fresh segment saw total revenue decrease 2.4 percent to $550.4 million.
The Global Forwarding segment reported a 33.5 percent increase in revenue to $468.8 million after C.H. Robinson completed the $228 million acquisition last fall of an Australian transportation services provider, APC Logistics PTY Ltd. The addition of APC and its 300 employees also contributed to an 8.2 percent increase in overall employee count.
C.H. Robinson shares closed at $72.81, down $4.89 per share or 6.3 percent.