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Ryder (R) to Report Q2 Earnings: What's in the Cards?

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Ryder System, Inc. (R - Free Report) is scheduled to report second-quarter 2022 results on Jul 27, before market open.

The Zacks Consensus Estimate for R’s second-quarter 2022 earnings has been revised upward by 36.2% in the past 90 days. The company also has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 48.2%.

Ryder System, Inc. Price and EPS Surprise

Ryder System, Inc. Price and EPS Surprise

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

Let’s see how things are shaping up for Ryder this earnings season.

Q2 Expectations

The Zacks Consensus Estimate for Ryder’s second-quarter 2022 revenues is pegged at $2.85 billion, indicating 19.6% growth year over year. The top line is likely to have been aided by revenue growth in all business segments.

The Zacks Consensus Estimate for Fleet Management Solutions revenues is pegged at $1.55 billion, indicating a 9.7% surge from the year-ago reported figure.Higher rental revenue driven by strong demand, higher pricing and higher fuel prices are likely to have aided the segment. 

The Zacks Consensus Estimate for Dedicated Transportation Solutions revenues is pegged at $417 million, indicating a 17.5% surge from the year-ago reported figure.Revenue growth from new business and increased pricing might have aided the segment.

The Zacks Consensus Estimate for Supply-Chain Solutions revenues is pegged at $1.07 billion, indicating a 38.4% surge from the year-ago reported figure.Contributions from acquisitions and solid revenue growth in all industry verticals from new business and increased volumes should have aided the segment. 

However, rising capital expenditures, primarily due to higher planned investments in the lease fleet might have hurt the bottom line.

What Our Model Says

Our proven model does not conclusively 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 odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Ryder has an Earnings ESP of 0.00% and a Zacks Rank #2.

Highlights of Q1

Ryder’s first-quarter 2022 earnings (excluding 24 cents from non-recurring items) of $3.59 per share surpassed the Zacks Consensus Estimate of $2.38. The bottom line increased more than 100% year over year on the back of higher revenues.

Total revenues of $2,853.9 million also outperformed the Zacks Consensus Estimate of $2,578.7 million. The top line increased 28.5% year over year on strong segmental performances.

Other Stocks to Consider

Here are a few other stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these too have the right combination of elements to beat on their second-quarter 2022 earnings:

Kirby (KEX - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #2. KEX will release results on Jul 28. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.

KEX has a long-term earnings growth rate of 12%. 

Southwest Airlines Co.(LUV - Free Report) has an Earnings ESP of +4.64% and a Zacks Rank #3. Improved air-travel demand is likely to aid LUV’s results.LUV will release results on Jul 28.

Southwest has an expected earnings growth rate of 226.98% for the current year. LUV delivered a trailing four-quarter earnings surprise of 33.5%, on average.

Southwest has a long-term earnings growth rate of 6%.

Old Dominion Freight Line(ODFL - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank #3. ODFL will release results on Jul 27.

Old Dominion has an expected earnings growth rate of 28.9% for the current year. ODFL delivered a trailing four-quarter earnings surprise of 6.9%, on average.

ODFL has a long-term earnings growth rate of 17.98%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.