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Will Higher Rental Revenues Aid Ryder's (R) Q3 Earnings?

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Ryder System, Inc. (R - Free Report) is slated to release third-quarter 2021 earnings numbers on Oct 27, before market open.

Let’s take a look at the factors that are expected to have influenced the company’s performance in the to-be-reported quarter.

Per the Zacks Consensus Estimate, total revenues in the Fleet Management Solutions (FMS) segment indicates a rise of 9.4% on a year-over-year basis. The uptick can be attributed to higher rental and ChoiceLease revenues as well as an increase in fuel pricing.

Ryder System, Inc. Price and EPS Surprise

 

Ryder System, Inc. Price and EPS Surprise

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

 

New business and higher volumes might have also aided the company’s Dedicated Transportation Solutions (DTS) segment revenues. Per the consensus mark, the metric rose 18.3% from third-quarter 2020 reported figure. The Zacks Consensus Estimate for Supply Chain Solutions (SCS) segment also suggests an 12.8% increase from the prior-year quarter’s reported number.

Meanwhile, fewer used vehicles sold due to lower inventory levels might have dented Ryder’s September-end results.

Earnings Whispers

Our proven Zacks model predicts an earnings beat for Ryder in the third quarter of 2021. This is because the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Ryder has an Earnings ESP of +4.73% as the Most Accurate Estimate is pegged at $2.22, while the Zacks Consensus Estimate is at $2.12. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Ryder sports a Zacks Rank #1.

Highlights of Q2 Earnings

Ryder’s second-quarter 2021 earnings (excluding 37 cents from non-recurring items) of $2.40 per share surpassed the Zacks Consensus Estimate of $1.33. Total revenues of $2,382.2 million outperformed the Zacks Consensus Estimate of $2,219.9 million. The top line increased 26% year over year.

Other Stocks to Consider

Investors interested in the broader Transportation  sector may also consider United Parcel Service, Inc. (UPS - Free Report) , Knight-Swift Transportation Holdings Inc. (KNX - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) . These stocks also possess the right combination of elements to beat on earnings this reporting cycle.

UPS has an Earnings ESP of +1.27% and is Zacks #3 Ranked, presently. The company will release third-quarter 2021 results on Oct 26.

Knight-Swift has an Earnings ESP of +0.72% and carries a Zacks Rank #2 at present. The company will release third-quarter 2021 results on Oct 20.

C.H. Robinson has an Earnings ESP of +1.06% and is currently a #2 Ranked player. The company will release third-quarter 2021 results on Oct 26.
 

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