Dahlman Rose Comments On C.H Robinson Worldwide Following Earnings

C.H. Robinson CHRW reported 4Q10 EPS of $0.62, in line with Dahlman Rose's estimate and just shy of consensus estimate of $0.63. It joined most companies in the ground transportation industry that have reported 4Q10 earnings in providing a largely upbeat outlook for 2011. C.H. Robinson reported 4Q10 EPS of $0.62, in line with Dahlman's estimate and just shy of consensus estimate of $0.63. This represented a 19% increase from 4Q09 EPS of $0.52 and was in line with 3Q10. The company benefited from a lower than anticipated tax rate that added roughly $0.01 to 4Q10. Revenue grew 16% to $2.3 Bn, largely in line with Dahlman's and consensus estimates. The operating income increased 15% to $164 MM vs its estimate of $166.7 MM. C.H. Robinson joined most companies in the ground transportation industry that have reported 4Q10 earnings in providing a largely upbeat outlook for 2011. We believe that, due to having wrapped up a relatively strong 2010 on a largely positive note, freight carriers have gained a significant amount of confidence in the sustainability and pace of the ongoing recovery. Dalman Rose has a Hold rating on CHRW CHRW closed Wednesday at $73.74