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Ryder (R) Q2 Earnings: What's in the Cards for the Stock?
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Ryder System, Inc. (R - Free Report) is scheduled to report second-quarter 2018 results on Jul 25, before the market opens.
In the first quarter of 2018, the company delivered a positive earnings surprise of 3.4% with better-than-expected earnings and revenues. Moreover, both metrics improved on a year-over-year basis. Growth was witnessed across all the segments. The company also flaunts an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in each of the preceding four quarters with an average beat of 3.9%.
However, things do not look up for the company this to-be-reported quarter. Notably, shares of the company have declined 1.3% in the Apr-Jun period versus the industry’s 5.3% rise.
Factors at Play
High capital expenditures are likely to put pressure on the bottom line in the second quarter. Also, the company expects adjusted earnings per share of 83-90 cents in the quarter, much lower than the earlier expected range of $1.20-$1.30.
The bleak scenario pertaining to used vehicle sales due to weak market conditions has been a cause for concern for quite some time. This might further hamper results in the soon-to-be-reported quarter. The company’s high debt levels are also worrisome.
However, segmental growth is anticipated to aid the company’s second-quarter results. Moreover, the company’s efforts to bolster its product portfolio through acquisitions are encouraging and might as well boost its overall results this earnings season. To this end, Ryder made two prominent acquisitions in the second quarter. The Metro Truck & Tractor Leasing buyout in June has expanded its footprint in the Baltimore Metro Area wherein demand for fleet management services is high while the MXD Group buyout in April has driven its e-commerce portfolio.
Earnings Whispers
Our proven model does not conclusively show that Ryder is likely to beat estimates in the soon-to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as elaborated below.
Earnings ESP: Ryder has an Earnings ESP of -0.47% as the Most Accurate Estimate stands at $1.28 per share, lower than the Zacks Consensus Estimate of $1.29. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Ryder carries a Zacks Rank #3, which increases the predictive power of ESP. However, only a positive ESP increases the odds of a likely earnings surprise. Therefore, this combination leaves surprise prediction inconclusive.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Investors interested in the broader Transportation sector may consider stocks like United Parcel Service, Inc. (UPS - Free Report) , Expeditors International of Washington, Inc. (EXPD - Free Report) and Canadian National Railway Company (CNI - Free Report) as these possess the right combination of elements to pull off an earnings beat in their next releases.
UPS has an Earnings ESP of +0.62% and a Zacks Rank of 3. The company will report second-quarter earnings on Jul 25.
Canadian National has an Earnings ESP of +1.83% and is a Zacks #3 Ranked stock. The company will report second-quarter earnings on Jul 24.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Ryder (R) Q2 Earnings: What's in the Cards for the Stock?
Ryder System, Inc. (R - Free Report) is scheduled to report second-quarter 2018 results on Jul 25, before the market opens.
In the first quarter of 2018, the company delivered a positive earnings surprise of 3.4% with better-than-expected earnings and revenues. Moreover, both metrics improved on a year-over-year basis. Growth was witnessed across all the segments. The company also flaunts an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in each of the preceding four quarters with an average beat of 3.9%.
However, things do not look up for the company this to-be-reported quarter. Notably, shares of the company have declined 1.3% in the Apr-Jun period versus the industry’s 5.3% rise.
Factors at Play
High capital expenditures are likely to put pressure on the bottom line in the second quarter. Also, the company expects adjusted earnings per share of 83-90 cents in the quarter, much lower than the earlier expected range of $1.20-$1.30.
The bleak scenario pertaining to used vehicle sales due to weak market conditions has been a cause for concern for quite some time. This might further hamper results in the soon-to-be-reported quarter. The company’s high debt levels are also worrisome.
However, segmental growth is anticipated to aid the company’s second-quarter results. Moreover, the company’s efforts to bolster its product portfolio through acquisitions are encouraging and might as well boost its overall results this earnings season. To this end, Ryder made two prominent acquisitions in the second quarter. The Metro Truck & Tractor Leasing buyout in June has expanded its footprint in the Baltimore Metro Area wherein demand for fleet management services is high while the MXD Group buyout in April has driven its e-commerce portfolio.
Earnings Whispers
Our proven model does not conclusively show that Ryder is likely to beat estimates in the soon-to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as elaborated below.
Earnings ESP: Ryder has an Earnings ESP of -0.47% as the Most Accurate Estimate stands at $1.28 per share, lower than the Zacks Consensus Estimate of $1.29. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Ryder carries a Zacks Rank #3, which increases the predictive power of ESP. However, only a positive ESP increases the odds of a likely earnings surprise. Therefore, this combination leaves surprise prediction inconclusive.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Ryder System, Inc. Price and EPS Surprise
Ryder System, Inc. Price and EPS Surprise | Ryder System, Inc. Quote
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like United Parcel Service, Inc. (UPS - Free Report) , Expeditors International of Washington, Inc. (EXPD - Free Report) and Canadian National Railway Company (CNI - Free Report) as these possess the right combination of elements to pull off an earnings beat in their next releases.
UPS has an Earnings ESP of +0.62% and a Zacks Rank of 3. The company will report second-quarter earnings on Jul 25.
Expeditors has an Earnings ESP of +1.54% and a Zacks Rank of 1. The company will report second-quarter earnings on Aug 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canadian National has an Earnings ESP of +1.83% and is a Zacks #3 Ranked stock. The company will report second-quarter earnings on Jul 24.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>