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Why Is Ryder (R) Up 2.8% Since Last Earnings Report?
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A month has gone by since the last earnings report for Ryder (R - Free Report) . Shares have added about 2.8% 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 its most recent earnings report in order to get a better handle on the important drivers.
Earnings Miss at Ryder in Q1
Quarterly earnings (excluding 13 cents from non-recurring items) of $2.81 per share missed the Zacks Consensus Estimate of $2.96. The bottom line plunged 21.7% year over year owing to lower results in Fleet Management Solutions and a Supply Chain Solutions asset impairment.
Revenues of $2,952 million outperformed the Zacks Consensus Estimate of $2,933.8 million. The top line increased 3.4% year over year on strong segmental performances.
Segmental Results
Fleet Management Solutions: Total revenues of $1,503 million were down 2% year over year. Operating revenues summed $1,262 million, down 2% year over year. Segmental revenues were hurt by negative impact of operating revenues from UK exit.
Supply-Chain Solutions: Total revenues were $1,201 million, up 10% year over year. Operating revenues rose 19% year over year to $879 million on the back of strong revenue growth in all industry verticals, primarily reflecting new business, higher volumes and increased pricing.
Dedicated Transportation Solutions: Total revenues amounted to $454 million, up 7% from the year-ago quarter. Operating revenues climbed 9% to $322 million. The revenue uptick was driven by higher pricing and volumes.
Liquidity & Capital Expenditure
Ryder exited the first quarter with cash and cash equivalents of $253 million compared with $267 million at the end of December 2022. R’s total debt (including the current portion) was $6,340 million at first-quarter end compared with $6,352 million reported at the end of December 2022.
March quarter’s capital expenditures increased to $802 million from $662 million in first-quarter 2022 due to higher planned investments in the lease fleet.
Outlook
For the second quarter of 2023, Ryder expects adjusted earnings per share in the range of $2.80-$3.05. For 2023, Ryder expects total revenues and operating revenues to increase 1% and 4%, respectively. Adjusted EPS for the year is now estimated to be $11.30-$12.05 (prior view: $11.05-$12.05). R still expects a free cash flow of $200 million for 2023. Net cash from operating activities is still projected to be $2.4 billion. Adjusted ROE is still anticipated to be 16-18%. Capital expenditure is still estimated to be $3 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Ryder has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ryder has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Ryder (R) Up 2.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Ryder (R - Free Report) . Shares have added about 2.8% 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 its most recent earnings report in order to get a better handle on the important drivers.
Earnings Miss at Ryder in Q1
Quarterly earnings (excluding 13 cents from non-recurring items) of $2.81 per share missed the Zacks Consensus Estimate of $2.96. The bottom line plunged 21.7% year over year owing to lower results in Fleet Management Solutions and a Supply Chain Solutions asset impairment.
Revenues of $2,952 million outperformed the Zacks Consensus Estimate of $2,933.8 million. The top line increased 3.4% year over year on strong segmental performances.
Segmental Results
Fleet Management Solutions: Total revenues of $1,503 million were down 2% year over year. Operating revenues summed $1,262 million, down 2% year over year. Segmental revenues were hurt by negative impact of operating revenues from UK exit.
Supply-Chain Solutions: Total revenues were $1,201 million, up 10% year over year. Operating revenues rose 19% year over year to $879 million on the back of strong revenue growth in all industry verticals, primarily reflecting new business, higher volumes and increased pricing.
Dedicated Transportation Solutions: Total revenues amounted to $454 million, up 7% from the year-ago quarter. Operating revenues climbed 9% to $322 million. The revenue uptick was driven by higher pricing and volumes.
Liquidity & Capital Expenditure
Ryder exited the first quarter with cash and cash equivalents of $253 million compared with $267 million at the end of December 2022. R’s total debt (including the current portion) was $6,340 million at first-quarter end compared with $6,352 million reported at the end of December 2022.
March quarter’s capital expenditures increased to $802 million from $662 million in first-quarter 2022 due to higher planned investments in the lease fleet.
Outlook
For the second quarter of 2023, Ryder expects adjusted earnings per share in the range of $2.80-$3.05. For 2023, Ryder expects total revenues and operating revenues to increase 1% and 4%, respectively. Adjusted EPS for the year is now estimated to be $11.30-$12.05 (prior view: $11.05-$12.05). R still expects a free cash flow of $200 million for 2023. Net cash from operating activities is still projected to be $2.4 billion. Adjusted ROE is still anticipated to be 16-18%. Capital expenditure is still estimated to be $3 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Ryder has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ryder has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.