C.H. Robinson Worldwide Inc. (CHRW:US), an arranger of freight shipments, led declines on the Standard & Poor’s 500 Index after posting lower quarterly profit than analysts estimated.
C.H. Robinson tumbled 9.9 percent to $60.41 at 11:41 a.m. in New York. An earlier decline of 10.2 percent was the biggest on an intraday basis since October 2011.
The logistics company’s fourth-quarter profit, excluding purchases and divestitures, was 68 cents a share. That missed (CHRW:US) the 70-cent average of estimates compiled by Bloomberg and spurred at least two analysts to cut their ratings (CHRW:US) on the Eden Prairie, Minnesota-based company.
C.H. Robinson is grappling with “increased competition from rapidly expanding high-quality competitors,” John Larkin, a Baltimore-based analyst at Stifel Financial Corp. with a sell rating on the shares, wrote in a note today. “The company will suffer from the law of large numbers and post unimpressive” earnings growth.
To contact the reporter on this story: Brooke Sutherland in New York at email@example.com
To contact the editor responsible for this story: Ed Dufner at firstname.lastname@example.org