Ryder System, Inc. (NYSE:R) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Ryder System, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 25% to $1.25 in the quarter versus EPS of $1.00 in the year-earlier quarter.
Revenue: Rose 2.57% to $1.6 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Ryder System, Inc. reported adjusted EPS income of $1.25 per share. By that measure, the company beat the mean analyst estimate of $1.23. It missed the average revenue estimate of $1.61 billion.
Quoting Management: Commenting on the Company’s second quarter 2013 performance, Ryder Chairman and CEO Robert Sanchez said, “We delivered strong year-over-year results in the quarter, despite continuing uncertain economic conditions. The improvement was driven by higher performance in our lease, commercial rental and supply chain offerings. Strong performance in our full service lease product line continued to reflect the vehicle replacement cycle that is currently underway with customers, as well as the benefit of improved residual values. We continued to see solid demand for our commercial rental product in the U.S., partially offset by lower rental demand in the U.K. We also made progress on our maintenance initiatives, although we have not realized all of the anticipated benefits. Our used vehicle sales product line continued to perform in line with expectations, with historically strong pricing levels. In Supply Chain Solutions, we began to see growth from the strong sales performance that began in 2012, supported by favorable outsourcing trends, especially within our dedicated services offering.”
Key Stats (on next page)…
Revenue increased 2.62% from $1.56 billion in the previous quarter. EPS increased 54.32% from $0.81 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.46 and has not changed. For the current year, the average estimate has moved up from a profit of $4.84 to a profit of $4.85 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)