Back to top

Ryder System (R) Surpasses Q3 Earnings & Revenue Estimates

Read MoreHide Full Article

Ryder System’s (R - Free Report)  third-quarter 2017 earnings (excluding 22 cents from non-recurring items) of $1.33 per share beat the Zacks Consensus Estimate of $1.29. However, the bottom line declined 20.4% on a year-over-year basis.

This year-over-year decline in earnings disappointed the investors. Consequently, shares of the company were down in early trading.

Ryder System reported total revenue of $1,848.5 million, which surpassed the Zacks Consensus Estimate of $1,806.4 million. Revenues increased 7.2% on a year-over-year basis with growth being witnessed in all segments.

Segment Results

Fleet Management SolutionsTotal revenue was $1.20 billion, up 4% year over year. Operating revenues (revenues excluding fuel) came in at $1.03billion, up 3% year over year. Segmental results were aided by an increase in lease revenues on the back of a larger average fleet size.

Dedicated Transportation Solutions: Total revenue came in at $272million, up 4% from the year-ago quarter. Operating revenues (excluding fuel and subcontracted transportation) inched up 1% year over year to $198 million.

Supply Chain Solutions: Total revenue in the quarter under review was $496million, up 19% year over year. Operating revenues (revenues excluding fuel and subcontracted transportation) increased 9% year over year to $376 million.

Liquidity

Ryder System, which carries a Zacks Rank #2 (Buy), exited the third quarter with cash and cash equivalents of $65.3 million compared with $58.8 million at the end of 2016. The company had total debt of $5,349.2 million compared with $5,391.3 million at the end of 2016. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ryder System, Inc. Price, Consensus and EPS Surprise

 

Ryder System, Inc. Price, Consensus and EPS Surprise | Ryder System, Inc. Quote

Guidance

The company now expects 2017 adjusted earnings in the band of $4.46-$4.56 per share compared with the previous range of $4.38-$4.58. The Zacks Consensus Estimate for 2017 is pegged at $4.44 per share. It expects fourth-quarter 2017 adjusted earnings per share in the band of $1.31-$1.41. The Zacks Consensus Estimate for the fourth quarter is pegged at $1.31 per share. Additionally, the company expects free cash flow of $250 million for full year 2017.

Other Important Releases Coming Up

Investors interested in the broader Transportation sector keenly await the third-quarter earnings reports of American Airlines Group Inc. (AAL - Free Report) , Alaska Air Group, Inc. (ALK - Free Report) and Norfolk Southern Corporation (NSC - Free Report) . While Alaska Air Group andNorfolk Southern will report third-quarter earnings on Oct 25, American Airlines will reveal the same on Oct 26.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>



More from Zacks Analyst Blog

You May Like