Ryder System Inc. Earnings: Fifth Straight Quarter of Double-Digit Growth
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Ryder System Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for the rental and leasing services company rose to $48.1 million (93 cents per share) vs. $37.1 million (72 cents per share) in the same quarter a year earlier. This marks a rise of 29.6% from the year earlier quarter.
Revenue: Rose 17.3% to $1.54 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: Ryder System Inc. reported adjusted net income of 97 cents per share. By that measure, the company fell in line with the mean estimate of 97 cents per share. Analysts were expecting revenue of $1.54 billion.
Quoting Management: Commenting on the Company’s full-year 2011 performance, Ryder Chairman and CEO Greg Swienton said, “In 2011, we delivered significantly higher, double-digit growth in both revenue and earnings despite volatile economic conditions. Our transactional products, including commercial rental and used vehicle sales, continued to perform exceptionally well, showing improvement not only in volumes, but commanding better pricing as well. In our contractual business, our largest product line, full service lease, began to show organic fleet growth in the latter part of the year, and we also saw significant organic improvement in Supply Chain Solutions. Although Dedicated Contract Carriage earnings showed an increase for the year, segment results were lower than our expectations. We generated very strong performance from the integration of five immediately accretive acquisitions completed since December of 2010. We also achieved a positive spread between our return on capital and cost of capital, and improved our return on equity by 350 basis points to 11.9%. In view of these factors, we have entered 2012 with good momentum, specific initiatives in place to accelerate organic growth, and confidence in our ability to deliver increased revenue and earnings even with only modest economic improvement anticipated in 2012.”
The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 45.5% and in the second quarter, the figure rose 34.2%.
Revenue has risen the past four quarters. Revenue increased 19.3% to $1.57 billion in the third quarter. The figure rose 17.7% in the second quarter from the year earlier and climbed 16.8% in the first quarter from the year-ago quarter.
The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the third quarter, it topped the mark by 7 cents, and in the second quarter, it was ahead by 2 cents.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 70 cents a share to 69 cents over the last ninety days. For the fiscal year, the average estimate has been unchanged at $3.49 a share.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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