Ryder System (R - Free Report) reported lower-than-expected earnings, but better-than-expected revenues in the fourth quarter of 2016. The company’s adjusted earnings of $1.07 per share missed the Zacks Consensus Estimate of $1.40 per share. Earnings also declined on a year-over-year basis. The tough market for the used vehicles hurt results.
Ryder reported total revenues of $1,729 million, which beat the Zacks Consensus Estimate of $1,722.9 million. Revenues also increased 3.38% on a year-over-year basis.
Fleet Management Solutions: Total revenue was flat at $1.15 billion in the fourth quarter. Operating revenues (revenues excluding fuel) decreased 1% year over year to $992 million.
Dedicated Transportation Solutions: Total revenue came in at $257 million, up 11% from the year-ago quarter. Operating revenues (excluding fuel and subcontracted transportation) grew 3% year over year to $193.1million.
Supply Chain Solutions: Total revenue in the quarter under review was $430 million, up 10% year over year. Operating revenues (revenue excluding fuel and subcontracted transportation) increased 9% year over year to $197 million.
Ryder System exited the fourth quarter with cash and cash equivalents of $58.8 million compared with $60.9 million at year-end 2015. The company had total debt of $5,391.6 million as against $5,502.6 million at the end of 2015.
This Zacks Rank #3 (Hold) company expects 2017 adjusted earnings in the band of $5.10 to $5.40 per share, while the Zacks Consensus Estimate is pegged at $5.76 per share. Moreover, the company expects first quarter 2017 adjusted earnings per share in the band of 82 cents to 92 cents and the Zacks Consensus Estimate to stand at $1.06 per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Important Releases Coming Up
Investors in the broader transportation space keenly await the fourth-quarter earnings reports of Spirit Airlines (SAVE - Free Report) , Alaska Air Group (ALK - Free Report) and Expeditors (EXPD - Free Report) , slated for release on Feb 7, Feb 8 and Feb 21, respectively.
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