Softening Demand Backdrop More Evident in C.H. Robinson's Third Quarter

C.H. Robinson’s third-quarter gross revenue slowed materially, falling 4% year over year (it was up 23% last quarter) as demand and pricing across truck brokerage (North American surface transportation) and global forwarding are easing off elevated levels. The total top line was shy of our forecast as the global forwarding backdrop slowed a bit faster than we anticipated. We expect to lower our $98 fair value estimate, albeit by less than 5%, as we temper our near-term revenue and margin assumptions. The shares are appropriately valued, in our view.