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Ryder (R) Gains From Dividends, Buybacks Amid High Capex
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Ryder System, Inc. (R - Free Report) is benefiting from its consistent shareholder-friendly initiatives adopted by the company. During 2021, Ryder rewarded its shareholders through dividends of $122 million and repurchased shares worth $57 million. In 2022, Ryder paid dividends of $123 million and repurchased shares worth $557 million. In 2023, Ryder paid dividends of $128 million and repurchased shares worth $337 million. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.
Ryder has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.42%. Further, R reported better-than-expected fourth-quarter 2023 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of $2.95 per share surpassed the Zacks Consensus Estimate of $2.75. Total revenues of $3,023 million outpaced the Zacks Consensus Estimate of $2,944.4 million.
On the flip side, Ryder’s weak liquidity position is concerning. At the end of fourth-quarter 2023, the company’s cash and cash equivalents stood at $204 million, much lower than the total debt (including the current portion) of $7,114 million. This implies that the company does not have sufficient cash to meet its current debt obligations.
High capex might have hurt the bottom line. Full-year 2023 capital expenditures increased to $3.27 billion compared with $2.65 billion in 2022 and $2.01 million in 2021. The uptick was owing to higher investments in the lease fleet and the timing of original equipment manufacturer deliveries. For 2024, capital expenditure is estimated to be $3.3 billion.
GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 16.47%.
The Zacks Consensus Estimate for 2024 earnings has been revised 8.9% upward over the past 90 days. GATX has an expected earnings growth rate of 6.51% for 2024. Shares of GATX have gained 26% in the past year.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 27.3% over the past 90 days. Shares of SKYW have surged 242.3% in the past year.
SKYW has an expected earnings growth rate of more than 100% for 2024. SKYW delivered a trailing four-quarter earnings surprise of 128.02%, on average.
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Ryder (R) Gains From Dividends, Buybacks Amid High Capex
Ryder System, Inc. (R - Free Report) is benefiting from its consistent shareholder-friendly initiatives adopted by the company. During 2021, Ryder rewarded its shareholders through dividends of $122 million and repurchased shares worth $57 million. In 2022, Ryder paid dividends of $123 million and repurchased shares worth $557 million. In 2023, Ryder paid dividends of $128 million and repurchased shares worth $337 million. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.
Ryder has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.42%. Further, R reported better-than-expected fourth-quarter 2023 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of $2.95 per share surpassed the Zacks Consensus Estimate of $2.75. Total revenues of $3,023 million outpaced the Zacks Consensus Estimate of $2,944.4 million.
On the flip side, Ryder’s weak liquidity position is concerning. At the end of fourth-quarter 2023, the company’s cash and cash equivalents stood at $204 million, much lower than the total debt (including the current portion) of $7,114 million. This implies that the company does not have sufficient cash to meet its current debt obligations.
High capex might have hurt the bottom line. Full-year 2023 capital expenditures increased to $3.27 billion compared with $2.65 billion in 2022 and $2.01 million in 2021. The uptick was owing to higher investments in the lease fleet and the timing of original equipment manufacturer deliveries. For 2024, capital expenditure is estimated to be $3.3 billion.
Zacks Rank and Stocks to Consider
Currently, Ryder carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Transportation sector are GATX Corporation (GATX - Free Report) and SkyWest, Inc. (SKYW - Free Report) . Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 16.47%.
The Zacks Consensus Estimate for 2024 earnings has been revised 8.9% upward over the past 90 days. GATX has an expected earnings growth rate of 6.51% for 2024. Shares of GATX have gained 26% in the past year.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 27.3% over the past 90 days. Shares of SKYW have surged 242.3% in the past year.
SKYW has an expected earnings growth rate of more than 100% for 2024. SKYW delivered a trailing four-quarter earnings surprise of 128.02%, on average.