C.H. Robinson reported better-than-expected fourth-quarter results in what the company called a challenging transportation market.
For the last several quarters the company has been contractually committed to lower pricing, officials said. While the volume of shipping has gone up, the margin per shipment has gone down.
The Eden Prairie-based logistics company, which reported results after the market closed Tuesday, said revenue for the fourth quarter rose 6.4 percent to $3.4 billion thanks to volume growth across all of its services.
According to Thomson Reuters, analysts expected the company to report total revenue of $3.3 billion.
For the year, total revenue decreased 2.5 percent to $13.1 billion, but above analysts' consensus estimate of $13 billion.
The company's net revenue for the year rose 0.4 percent to $2.3 billion.
Earnings per share for the quarter declined 2.3 percent to 86 cents per share, or $122.3 million, but analysts covering the company expected the company to report earnings per share of 84 cents per share, or net income of $120.2 million.
Earnings per share for the year were $3.59 per share, up 2.3 percent from the $3.51 per share it reported in 2015. For the year, the company reported a net income of $513.4 million, a 0.7 percent increase over 2015's net income.
Analysts covering the company expected C.H. Robinson to report $3.58 per share or $512.5 million in earnings.
For the first time, C.H. Robinson reported results by business group as well.
Its largest segment, North American Surface Transportation — which includes truck, intermodal and domestic air services — saw quarterly sales rise 5.1 percent to $2.3 billion. NAST accounts for approximately two thirds of the company's total revenue.
