Back to top

Image: Bigstock

Ryder (R) Q1 Earnings & Revenues Beat, '19 EPS View Bullish

Read MoreHide Full Article

Ryder System (R - Free Report) delivered better-than-expected results in the first quarter of 2019. The company’s adjusted earnings of $1.11 per share surpassed the Zacks Consensus Estimate of 99 cents. The bottom line also improved on a year-over-year basis on revenue growth and a better operating performance.

Total revenues grossed $2,180 million, above the Zacks Consensus Estimate of $2,131 million. The top line also rose 15% year over year with growth across all segments. As the company is investing substantially in its lease and rental fleets, capital expenditures (net) soared 62.6% year over year to $1.01 billion during the first quarter of 2019. Operating cash flow was $485 million in the reported quarter, up 43.9%.

Ryder System, Inc. Price, Consensus and EPS Surprise

 

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


Segmental Results

Fleet Management Solutions (FMS): Total revenues amounted to $1.35 billion, up 9% year over year. Operating revenues (excluding fuel) summed $1.14 billion, up 10% year over year. Increase of 15% and 8%, each in commercial rental and ChoiceLease revenues, drove this segmental performance.

Dedicated Transportation Solutions (DTS): Total revenues came in at $349.6 million, up 17% from the year-ago quarter. Operating revenues (excluding fuel and subcontracted transportation) also rose 17% to $235.6 million on the back of volume growth, new businesses and customer expansions.

Supply Chain Solutions (SCS): Total revenues were $635.7 million, up 28% year over year. Operating revenues (excluding fuel and subcontracted transportation) improved 25% year over year to $477.1 million. Segmental results were boosted by volume growth, new businesses, higher pricing and the acquisition of MXD Group, completed last April.

Liquidity

This Zacks Rank #3 (Hold) company exited the first quarter with cash and cash equivalents of $62.8 million compared with $68.1 million at the end of 2018. As of Mar 31, 2019, the company had total debt of $7.1 billion compared with $6.6 billion at 2018 end. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Q2 & 2019 Outlook

For the second quarter, Ryder estimates adjusted earnings of $1.34-$1.44 per share, lower than $1.46 reported in the year-ago period. The Zacks Consensus Estimate for the same stands at $1.50.

Based on healthy demand conditions, the company has raised its full-year adjusted earnings forecast to $6.05-$6.35 per share from $6-$6.30, expected earlier. This compares with $5.97 per share reported in the prior year.  The mid-point of the guided range — $6.2 — lies above the Zacks Consensus Estimate of $6.18. While the current-year earnings guidance is encouraging, the company’s free cash flow projection is projected to be a negative of $1.1 billion in the year.

Upcoming Releases

Investors interested in the broader Transportation sector are keenly awaiting first-quarter earnings reports from key players like Expeditors International of Washington, Inc. (EXPD - Free Report) , Air Lease Corporation (AL - Free Report) and Hertz Global Holdings, Inc (HTZ - Free Report) . While Hertz Global will release first-quarter earnings on May 6, Expeditors and Air Lease will announce the same on May 7 and May 9, respectively.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

Published in