Ryder System Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Ryder System, Inc. (NYSE:R) will unveil its latest earnings on Tuesday, July 24, 2012. Ryder System is a global provider of transportation and supply chain management solutions.

Ryder System, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 93 cents per share, a rise of 17.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.06. Between one and three months ago, the average estimate moved up. It has dropped from $1.10 during the last month. Analysts are projecting profit to rise by 5.4% compared to last year’s $3.72.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at profit of 59 cents per share against a mean estimate of net income of 58 cents. The company fell in line with estimates in the fourth quarter of the last fiscal year.

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A Look Back: In the first quarter, profit rose 36.6% to $34.3 million (67 cents a share) from $25.1 million (48 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 7.8% to $1.54 billion from $1.43 billion.

Stock Price Performance: Between April 23, 2012 and July 18, 2012, the stock price fell $13.05 (-27%), from $48.38 to $35.33. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 13, 2012, when shares rose for six straight days, increasing 5.9% (+$3.05) over that span. It saw one of its worst periods between May 8, 2012 and May 18, 2012 when shares fell for nine straight days, dropping 12.3% (-$5.78) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.64 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.93 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 50.1% to $1.76 billion while assets rose 3.1% to $1.12 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 45.5% in the third quarter of the last fiscal year and 29.6% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 17.7% in the second quarter of the last fiscal year, 19.3% in the third quarter of the last fiscal year and 17.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Wall St. Revenue Expectations: Analysts predict a rise of 5.3% in revenue from the year-earlier quarter to $1.59 billion.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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