Ryder System, Inc. Earnings Cheat Sheet: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component Ryder System, Inc. (NYSE:R) reported net income above Wall Street’s expectations for the second quarter. Ryder System, Inc. is a global provider of transportation and supply chain management solutions. Its business is divided into three segments of specialization: Fleet Management Solutions, Supply Chain Solutions and Dedicated Contract Carriage. .

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Ryder System Earnings Cheat Sheet for the Second Quarter

Results: Net income for the rental and leasing services company rose to $40 million (77 cents per share) vs. $29.8 million (56 cents per share) in the same quarter a year earlier. This marks a rise of 34% from the year earlier quarter.

Revenue: Rose 17.7% to $1.51 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: R reported adjusted net income of 92 cents per share. By that measure, the company beat the mean estimate of 77 cents per share. It beat the average revenue estimate of $1.47 billion.

Quoting Management: Ryder Chairman and CEO Greg Swienton said, “Although the economic environment remains challenging and inconsistent, we have been very successful in taking advantage of market opportunities to deliver second quarter and first-half earnings that exceeded our plan. In Fleet Management Solutions, our commercial rental and used vehicle sales continued to perform extremely well and we saw improvement in full service lease retention and new sales. As anticipated, improved FMS performance was partially offset by higher running costs on a relatively older lease fleet. In Supply Chain Solutions, we benefited from improved volumes across all of our targeted industry sectors, and new business wins. While the Japan natural disaster reduced earnings by $0.02 per share in the second quarter, this impact was lower than we had anticipated. In addition to our organic growth, all of our business segments have benefited from the strong performance of acquisitions, including last month’s Hill Hire acquisition as well as Total Logistic Control, which was completed in December of 2010. Additionally, our continued financial strength allowed us to recently announce Ryder’s seventh dividend increase since 2005.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose more than twofold and in the fourth quarter of the last fiscal year, the figure rose more than fourfold.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the first quarter, by 2 cents in the fourth quarter of the last fiscal year, and by 11 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 16.8% to $1.43 billion in the first quarter. The figure rose 6.5% in the fourth quarter of the last fiscal year from the year earlier and climbed 4.8% in the third quarter of the last fiscal year from the year-ago quarter.

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)