Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Ryder System Inc. (R - Analyst Report), one of the world's largest providers of integrated logistics and transportation solutions, reported mixed second quarter 2013 results. Quarterly adjusted earnings were $1.25 per share, which surpassed the Zacks Consensus Estimate of $1.22 and escalated 15.0% from $1.09 in the year-ago quarter. The year-over-year growth was driven by better performances across lease, commercial rental and supply chain units.

The company registered revenues of $1,604 million in the second quarter, missing the Zacks Consensus Estimate of $1,611 million. Comparing year over year, revenues improved 3.0% from $1,564 million.

Operating revenue (total revenue less Fleet Management Solutions fuel and all subcontracted transportation) increased 4% year over year to $1,313 million, supported by full service lease growth plus expansion of business in the Supply Chain Solutions segment.

Segment Results

Fleet Management Solutions: Total revenue increased 2% year over year to $1,121 million in the second quarter buoyed by higher Contract-related maintenance and Full Service lease revenues that increased 12% and 4%, respectively. Operating revenue for the segment moved up 3% year over year to $853 million.

Supply Chain Solutions: The segment includes operational activities of the company’s Dedicated Contract Carriage business. Total revenue was $597 million, up 5% from the year-ago period. Operating revenue (excluding subcontracted transportation) grew 6% year over year to $515 million. The growth was primarily backed by higher new business sales.

Liquidity and Capital Expenditure

Ryder System ended the reported quarter with cash and cash equivalents of $73 million compared with $66 million at year-end 2012. The company had long-term debt of $3,656 million, representing debt-to-equity ratio of 253%. Cash from operations was $564 million, while net capital expenditure amounted to $760 million.

Guidance

For 2013, Ryder revised its earnings estimate to $4.75–$4.85 per share from $4.70–$4.85 guided previously. For the third quarter, the company estimates earnings at $1.41 to $1.46 per share.

Recommendation

Ryder System continues to benefit from favorable industry fundamentals along with improved average fleet age, prospects in rental business and better financials. The company also targets capturing more market share by deploying a fuel-efficient fleet and enhanced services.

Despite the positives, the company faces certain headwinds that may limit its near-term growth potential. These include unstable economic conditions, heavy capital expenditures, stiff competition and federal regulations.

Ryder System operates with the likes of American Railcar Industries Inc. (ARII - Snapshot Report), FLY Leasing Ltd (FLY - Snapshot Report) and The Greenbrier Companies Inc. (GBX - Snapshot Report). The stock presently holds a Zacks Rank #4 (Sell).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E-HOUSE CHIN EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTL CONS AI ICAGY 33.30 +5.38%