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Here's What You Should Expect From Ryder's (R) Q2 Earnings

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Ryder System, Inc. (R - Free Report) is scheduled to report second-quarter 2021 results on Jul 28, before market open.

The Zacks Consensus Estimate for second-quarter earnings is unchanged at $1.33 per share in the past 60 days.

With this, let’s see how things are shaping up for this earnings season.

Ryder System, Inc. Price and EPS Surprise

 

Ryder System, Inc. Price and EPS Surprise

Ryder System, Inc. price-eps-surprise | Ryder System, Inc. Quote

 

Ryder’s second-quarter performance is expected to have benefited from improving economic and freight market conditions. Owing to new business and higher volumes, the company’s Supply Chain Solutions (SCS) segment is expected to have performed well. The Zacks Consensus Estimate for SCS revenues suggests an approximate rise of 33.7% from the year-ago quarter’s reported figure.

The Fleet Management Solutions (FMS) segment too is likely to have performed well in the June-end quarter (driven by lease, rental and used vehicle sales). The Zacks Consensus Estimate for FMS revenues suggests a 13.2% rise from second-quarter 2020’s reported number. Additionally, the consensus estimate for Dedicated Transportation Solutions (DTS) segment also surged 11.6% from the year-ago quarters reported figure.

However, the bottom line is expected to be hurt in the quarter due to high capital expenditures stemming from investments in rental fleets.

Earnings Whispers

The proven Zacks model does not predict an earnings beat for Ryder this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Ryder has an Earnings ESP of -0.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Ryder presently carries a Zacks Rank #3.

Highlights of Q2 Earnings

Ryder delivered first-quarter 2021 earnings (excluding 13 cents from non-recurring items) of $1.09 per share, surpassing the Zacks Consensus Estimate of 58 cents. Total revenues of $2,221.6 million beat the Zacks Consensus Estimate of $2,148.1 million. The top line moved up approximately 3% year over year owing to higher supply chain and rental revenues.

Stocks to Consider

Investors interested in the broader Transportation  sector may also consider Hawaiian Holdings, Inc. (HA - Free Report) , Canadian Pacific Railway Limited (CP - Free Report) and Allegiant Travel Company (ALGT - Free Report) . These stocks too possess the right combination of elements to beat on earnings this reporting cycle.

Hawaiian Holdings has an Earnings ESP of +2.93% and is Zacks #2 Ranked, presently. The company will release second-quarter 2021 results on Jul 27.

Canadian Pacific has an Earnings ESP of +0.71% and carries a Zacks Rank #3 at present. The company will release second-quarter 2021 results on Jul 28.

Allegiant has an Earnings ESP of +9.04% and is currently a #3 Ranked player. The company will release second-quarter 2021 results on Jul 28.