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Ryder (R) Up 6.5% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Ryder (R - Free Report) . Shares have added about 6.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ryder due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ryder Beats Q4 Earnings Estimates
Ryder System’s (R - Free Report) fourth-quarter 2021 earnings (excluding 17 cents from non-recurring items) of $3.52 per share surpassed the Zacks Consensus Estimate of $2.49. The bottom line increased significantly year over year on the back of higher revenues.
Total revenues of $2,600 million also outperformed the Zacks Consensus Estimate of $2,462.4 million. The top line increased 17.5% year over year on strong segmental performances.
Segmental Results
Fleet Management Solutions: Total revenues of $1,499 million were up 12% year over year. Operating revenues (excluding fuel and lease liability insurance revenues) summed $1,300 million, up 9% year over year. Segmental revenues benefited from higher rental revenues on the back of strong demand and favorable pricing. Revenues increased on higher fuel pricing as well. Within the segment, commercial rental revenues increased 35% year over year while fuel services revenues jumped 42%. ChoiceLease revenues inched up 1% while SelectCare and other revenues climbed 11%.
Dedicated Transportation Solutions: Total revenues amounted to $402 million, up 33% from the year-ago quarter’s figure. Operating revenues (excluding fuel and subcontracted transportation) climbed 26% to $291 million. The revenue uptick was driven by new business, favorable pricing and higher volumes.
Supply-Chain Solutions: Total revenues in the segment were $870 million, up 22% year over year. Operating revenues (excluding fuel and subcontracted transportation) rose 21% year over year to $614 million on the back of revenue growth in all industry verticals.
Other Details
Ryder exited the fourth quarter with cash and cash equivalents of $234 million compared with $151.3 million at the end of 2020. The company’s total debt (including the current portion) fell to $6,579.7 million at the end of the fourth quarter from $6,610.2 million at the end of 2020.
During 2021, gross capital expenditures increased to $2 billion from $1.1 billion in the year-ago period due to higher investments in rental fleet. Free cash flow in 2021 was $1.1 billion, down from $1.6 billion in 2020.
Owing to a bullish 2022 outlook, Ryder plans to enter into a $300-million accelerated share-repurchase program.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
The consensus estimate has shifted 11.35% due to these changes.
VGM Scores
At this time, Ryder has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Ryder has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Ryder (R) Up 6.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Ryder (R - Free Report) . Shares have added about 6.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ryder due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ryder Beats Q4 Earnings Estimates
Ryder System’s (R - Free Report) fourth-quarter 2021 earnings (excluding 17 cents from non-recurring items) of $3.52 per share surpassed the Zacks Consensus Estimate of $2.49. The bottom line increased significantly year over year on the back of higher revenues.
Total revenues of $2,600 million also outperformed the Zacks Consensus Estimate of $2,462.4 million. The top line increased 17.5% year over year on strong segmental performances.
Segmental Results
Fleet Management Solutions: Total revenues of $1,499 million were up 12% year over year. Operating revenues (excluding fuel and lease liability insurance revenues) summed $1,300 million, up 9% year over year. Segmental revenues benefited from higher rental revenues on the back of strong demand and favorable pricing. Revenues increased on higher fuel pricing as well. Within the segment, commercial rental revenues increased 35% year over year while fuel services revenues jumped 42%. ChoiceLease revenues inched up 1% while SelectCare and other revenues climbed 11%.
Dedicated Transportation Solutions: Total revenues amounted to $402 million, up 33% from the year-ago quarter’s figure. Operating revenues (excluding fuel and subcontracted transportation) climbed 26% to $291 million. The revenue uptick was driven by new business, favorable pricing and higher volumes.
Supply-Chain Solutions: Total revenues in the segment were $870 million, up 22% year over year. Operating revenues (excluding fuel and subcontracted transportation) rose 21% year over year to $614 million on the back of revenue growth in all industry verticals.
Other Details
Ryder exited the fourth quarter with cash and cash equivalents of $234 million compared with $151.3 million at the end of 2020. The company’s total debt (including the current portion) fell to $6,579.7 million at the end of the fourth quarter from $6,610.2 million at the end of 2020.
During 2021, gross capital expenditures increased to $2 billion from $1.1 billion in the year-ago period due to higher investments in rental fleet. Free cash flow in 2021 was $1.1 billion, down from $1.6 billion in 2020.
Owing to a bullish 2022 outlook, Ryder plans to enter into a $300-million accelerated share-repurchase program.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
The consensus estimate has shifted 11.35% due to these changes.
VGM Scores
At this time, Ryder has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Ryder has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.