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Ryder (R) Q2 Earnings & Revenues Top Estimates, Increase Y/Y

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Ryder System, Inc.’s (R - Free Report) second-quarter 2018 earnings (excluding 62 cents from non-recurring items) of $1.42 per share surpassed the Zacks Consensus Estimate of $1.29. The bottom line also increased 42% on a year-over-year basis. Results were aided by higher revenues.

Total revenues came in at $2,089.3 million, outpacing the Zacks Consensus Estimate of $1,983 million. The reported figure improved 16.5% on a year-over-year basis with growth across all segments. As the company is investing significantly on its lease and rental fleets capital expenditures (net) in the first half of 2018 rose more than 60% to $1,421.3 million. On a year-to-date basis, operating cash flow totalled $820 million, up 12%.

Segmental Results

Fleet Management Solutions (FMS): Total revenues amounted to $1.30 billion, up 11% year over year. Operating revenues (excluding fuel) came in at $1.08 billion, up 8% year over year. Increase in commercial rental and ChoiceLease revenues drove segmental performance. ChoiceLease revenues were up 6% as well.

Dedicated Transportation Solutions (DTS): Total revenues summed $331 million, up 21% from the year-ago quarter. Operating revenues (excluding fuel and subcontracted transportation) rose 7% year over year to $214 million on the back of volume growth among other factors.

Supply Chain Solutions (SCS): Total revenues were $605 million, up 30% year over year. Operating revenues (excluding fuel and subcontracted transportation) improved 20% year over year to $430 million. Segmental results were aided by volume growth and the acquisition of MXD Group, which was completed in April.

Liquidity

This Zacks Rank #3 (Hold) company exited the second quarter with cash and cash equivalents of $73.6 million compared with $78.3 million at the end of 2017. The company had total debt of $5,977.7 million compared with $5,409.7 million at 2017 end. 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

Q3 Outlook

Ryder expects adjusted earnings per share of $1.55-$1.65 in third-quarter 2018 compared with $1.34 reported in the year-ago period. The Zacks Consensus Estimate for third- quarter earnings  is pegged at $1.67.

Upbeat 2018 Outlook

For 2018, Ryder raised its earnings outlook and anticipates adjusted earnings per share of $5.62-$5.82 compared with $5.45-$5.70 projected earlier. This upside can be attributed to the company’s expectations of healthy improvements in rental, supply chain, and dedicated businesses. The Zacks Consensus Estimate for 2018 earnings stands at $5.62 per share.

Further, the company expects organic lease fleet growth of 8,500 vehicles for the full year, an increase of 2,000 units from the past projection.

Upcoming Releases

Investors interested in the broader Transportation Sector are awaiting second-quarter 2018 earnings reports from key players, namely Genesee & Wyoming Inc. , C.H. Robinson Worldwide, Inc. (CHRW - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) . While Genesee & Wyoming will release results on Jul 27, C.H. Robinson and Expeditors will announce the same on Jul 31 and Aug 7, respectively.

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