C.H. Robinson’s stock price has surged about 168% in two years, hitting almost $200 after earnings. Analysts wonder what’s next for the giant brokerage and how it can continue its impressive performance. The company aims to reach a 40% operating margin in its core brokerage activities by 2027, focusing on maximizing earnings growth.

CFO Damon Lee emphasized the company’s focus on margin expansion and quality of earnings growth as it aims to reach the 40% target. C.H. Robinson’s Lean AI strategy has led to a decline in its workforce, raising questions about sustainability and customer service. The company’s emphasis on productivity benchmarks and automation through AI has led to increased efficiency.

Despite facing headwinds like weak global freight demand, rising spot costs, and falling ocean rates, C.H. Robinson posted improved financial metrics in the fourth quarter. The company’s performance relative to peers like J.B. Hunt and Knight Swift has been commendable, with a focus on market share growth. Management remains optimistic about the company’s earnings power amidst challenging market conditions.

The company’s gross margins at NAST are up year-on-year, showcasing market share growth and productivity gains. Despite facing challenges like rising spot rates and winter storms, C.H. Robinson remains focused on enhancing efficiency and profitability. Analysts have raised price targets for the company, citing its strong performance and growth potential in the market.

Read more at Yahoo Finance: what’s next for C.H. Robinson?