Ryder System Inc. Earnings Cheat Sheet: Fifth Straight Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Ryder System Inc. (NYSE:R) reported net income above Wall Street’s expectations for the third quarter. Ryder System is a global provider of transportation and supply chain management solutions.

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Ryder System Earnings Cheat Sheet for the Third Quarter

Results: Net income for the rental and leasing services company rose to $56.5 million ($1.10 per share) vs. $38.8 million (74 cents per share) in the same quarter a year earlier. This marks a rise of 45.5% from the year earlier quarter.

Revenue: Rose 19.3% to $1.57 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: R reported adjusted net income of $1.09 per share. By that measure, the company beat the mean estimate of $1.03 per share. Analysts were expecting revenue of $1.55 billion.

Quoting Management: Ryder Chairman and CEO Greg Swienton commented, “We exceeded our own expectations for the third quarter in an uncertain, slow growth business environment by delivering on our targets within Fleet Management Solutions, and exceeding our plans in Supply Chain Solutions. We generated a very strong operating revenue increase of 17%, as well as earnings growth of 46%, reflecting both acquisitions and organic growth. Our acquisition teams have significantly contributed to our performance by successfully integrating operations and transitioning newly acquired customers. “In Fleet Management Solutions, we saw continuing strong demand and higher pricing for our commercial rental and used vehicle sales offerings. Continuing positive new lease sales have led to the largest organic U.S. lease fleet growth in the last 11 quarters. As anticipated, these improvements continue to be partially offset by higher maintenance costs on an older lease fleet.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 34.2% and in the first quarter, the figure rose more than twofold.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the second quarter, by 7 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 17.7% to $1.51 billion in the second quarter. The figure rose 16.8% in the first quarter from the year earlier and climbed 6.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 87 cents a share to 98 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $3.07 per to share to $3.43.

Competitors to Watch: Pacer International, Inc. (NASDAQ:PACR), J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT), Northgate plc (NYSE:NTG), Hub Group, Inc. (NASDAQ:HUBG), Avis Budget Group Inc. (NYSE:CAR), AMERCO (NASDAQ:UHAL), UTi Worldwide Inc. (NASDAQ:UTIW), Expeditors Intl. of Washington (NASDAQ:EXPD), Hub Group, Inc. (NASDAQ:HUBG), Roadrunner Transportation Services Hold. (NYSE:RRTS), Echo Global Logistics, Inc. (NASDAQ:ECHO), Vitran Corp., Inc. (NASDAQ:VTNC), FedEx (NYSE:FDX), United Parcel Service, Inc. (NYSE:UPS).

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(Source: Xignite Financials)

 

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