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Ryder (R) Banks on Strong Freight Market & 2022 Guidance
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Ryder System, Inc. (R - Free Report) is benefiting from improving economic and freight market conditions in the United States. Fleet Management Solutions (FMS) total revenues rose 10% to $5,678.9 million in 2021. The uptick was driven by higher rental revenues on strong demand and favorable pricing. The Supply Chain Solutions (SCS) and Dedicated Transportation Solutions (DTS) segments’ total revenues increased 24% and 19% to $3,154.8 million and $1,457.2 million, respectively, in the said time period owing to new business, favorable pricing and higher volumes.
Also, R’s measures to reward its shareholders through dividends and share buybacks are encouraging. In July 2021, the company announced a 3.6% hike in its quarterly dividend payout to 58 cents per share (annualized $2.32). The company is also active on the buyback front. In February 2022, the company entered into a $300-million accelerated share repurchase program, which will run through October 2022.
Ryder expects to benefit from a strong used vehicle sales and a rental environment in 2022. The company’s outlook for 2022 is encouraging. It expects total revenues and operating revenues to increase approximately 10% in 2022. Adjusted earnings per share for the full year are estimated to be $11-$12. This indicates an increase of 15-25% from 2021.
Gross capital expenditures rose by 81.8% to $2 billion in 2021. The uptick was primarily due to higher planned investments in the rental fleet. For 2022, capital expenditures are expected in the band of $2.7-$2.8 billion. High capex may play a spoilsport and hurt Ryder’s bottom line, which is one of the major players in the Transportation - Equipment and Leasing industry. Other major players in the industry are Air Lease Corporation (AL - Free Report) and Trinity Industries, Inc. (TRN - Free Report) .
Air Lease Strong freight and cargo markets are supporting demand for the company’s wide-body passenger aircraft. Continued recovery in airline operations is further driving lease demand. Higher lease demand, coupled with rising interest rates, indicates a rising lease rate environment, bodes well.
AL has an earnings surprise of 6%, having surpassed the Zacks Consensus Estimate in two of the past four quarters (missing the same in two).
Trinity’s improving cash and cash equivalents is encouraging. At the end of the fourth quarter, the company’s cash and cash equivalents were $167.3 million, higher than $132 million at the end of December 2020.
TRN has an earnings surprise of 60.8%, having surpassed the Zacks Consensus Estimate in all of the last four quarters.
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Ryder (R) Banks on Strong Freight Market & 2022 Guidance
Ryder System, Inc. (R - Free Report) is benefiting from improving economic and freight market conditions in the United States. Fleet Management Solutions (FMS) total revenues rose 10% to $5,678.9 million in 2021. The uptick was driven by higher rental revenues on strong demand and favorable pricing. The Supply Chain Solutions (SCS) and Dedicated Transportation Solutions (DTS) segments’ total revenues increased 24% and 19% to $3,154.8 million and $1,457.2 million, respectively, in the said time period owing to new business, favorable pricing and higher volumes.
Also, R’s measures to reward its shareholders through dividends and share buybacks are encouraging. In July 2021, the company announced a 3.6% hike in its quarterly dividend payout to 58 cents per share (annualized $2.32). The company is also active on the buyback front. In February 2022, the company entered into a $300-million accelerated share repurchase program, which will run through October 2022.
Ryder expects to benefit from a strong used vehicle sales and a rental environment in 2022. The company’s outlook for 2022 is encouraging. It expects total revenues and operating revenues to increase approximately 10% in 2022. Adjusted earnings per share for the full year are estimated to be $11-$12. This indicates an increase of 15-25% from 2021.
Gross capital expenditures rose by 81.8% to $2 billion in 2021. The uptick was primarily due to higher planned investments in the rental fleet. For 2022, capital expenditures are expected in the band of $2.7-$2.8 billion. High capex may play a spoilsport and hurt Ryder’s bottom line, which is one of the major players in the Transportation - Equipment and Leasing industry. Other major players in the industry are Air Lease Corporation (AL - Free Report) and Trinity Industries, Inc. (TRN - Free Report) .
Air Lease Strong freight and cargo markets are supporting demand for the company’s wide-body passenger aircraft. Continued recovery in airline operations is further driving lease demand. Higher lease demand, coupled with rising interest rates, indicates a rising lease rate environment, bodes well.
AL has an earnings surprise of 6%, having surpassed the Zacks Consensus Estimate in two of the past four quarters (missing the same in two).
Trinity’s improving cash and cash equivalents is encouraging. At the end of the fourth quarter, the company’s cash and cash equivalents were $167.3 million, higher than $132 million at the end of December 2020.
TRN has an earnings surprise of 60.8%, having surpassed the Zacks Consensus Estimate in all of the last four quarters.