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Ryder Stock Barely Moves Higher Since Q3 Earnings Release
Shares of Ryder System, Inc. (R) have moved 0.6% higher since its third-quarter 2024 earnings release on Oct. 24, 2024. The uptick can be attributed to the better-than-expected earnings performance.
Quarterly earnings per share (EPS) of $3.44 surpassed the Zacks Consensus Estimate of $3.39. However, the bottom line plunged 3.9% year over year, reflecting weaker market conditions in rental and used vehicle sales, partially offset by higher earnings in contractual lease, supply chain, and dedicated businesses. The reported figure lies within the company-guided range of $3.30-$3.50.
Find the latest EPS estimates and surprises on ZacksEarnings Calendar.
Total revenues of $3.16 billion lagged the Zacks Consensus Estimate of $3.36 billion. The top line improved 8.3% year over year. Operating revenues of $2.59 million grew 9% year over year, reflecting recent acquisitions.
Ryder System, Inc. Price, Consensus and EPS Surprise
Ryder System, Inc. price-consensus-eps-surprise-chart | Ryder System, Inc. Quote
Segmental Results
Fleet Management Solutions: Total revenues of $1.47 billion inched down 1% year over year owing to lower fuel services revenue passed through to customers, partially offset by higher operating revenues.
Operating revenues totaled $1.28 million, up 1% year over year due to higher ChoiceLease revenues, partially offset by lower rental demand.
Supply-Chain Solutions: Total revenues of $1.31 billion inched up 10% year over year, owing to recent acquisitions.
Operating revenues rose 10% year over year to $996 million, mainly due to recent acquisitions.
Dedicated Transportation Solutions: Total revenues of $633 million and operating revenues of $486 million increased 41% and 49%, year over year, respectively, owing to acquisition.
Liquidity & Buyback
Ryder exited the third quarter with cash and cash equivalents of $162 million compared with $164 million at the end of the prior quarter. R’s total debt (including the current portion) was $7.60 billion at the third-quarter end compared with $7.53 billion at the end of the prior quarter.
R generated $629 million of net cash from operating activities in the reported quarter.Free cash flow came in at $147 million. Capital expenditures paid were $598 million.
Outlook
For fourth-quarter 2024, Ryder expects adjusted EPS in the range of $3.32-$3.52. The Zacks Consensus Estimate is currently pegged at $3.69.
For 2024, Ryder has updated its guidance. Adjusted EPS for the year is now estimated to be between $11.90 and $12.10 (prior view: $11.90 and $12.40). The Zacks Consensus Estimate of $12.09 lies within the updated guidance.
Management now anticipates total revenues to increase by almost 7% (prior view: up 8%). Operating revenues (adjusted) are still forecasted to increase 8%.
Adjusted ROE (return on equity) is still suggested in the 16%-16.5% band. Net cash from operating activities is still projected to be $2.4 billion. Capital expenditures are still estimated to be $2.9 billion.
Ryder’s Zacks Rank & Price Performance
Currently, Ryder carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company’s shares gained 21.4% so far this year compared with the 37.2% rise of the industry it belongs to.
YTD Price Comparison
Zacks Investment Research
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Performances of Other Transportation Companies
Delta Air Lines (DAL) reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis, mainly due to high labor costs.
Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year.
J.B. Hunt Transport Services, Inc. (JBHT)third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.
Total operating revenues of $3.07 billionsurpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. The downfall was owing to a 5% and 6% decrease in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decline in load volume of 10% and 6% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), respectively, and 6% fewer stops in Final Mile Services (FMS). These were partially offset by JBI load growth of 5%, which included growth in both the transcontinental and eastern networks, and a 3% increase in revenue per load in ICS. Total operating revenue, excluding fuel surcharge revenue, decreased less than 1% from the year-ago reported quarter.
United Airlines Holdings, Inc. (UAL)reported third-quarter 2024 EPS (excluding 43 cents from non-recurring items) of $3.33, which surpassed the Zacks Consensus Estimate of $3.10. Earnings decreased 8.8% on a year-over-year basis.
Operating revenues of $14.84 billion beat the Zacks Consensus Estimate of $14.76 billion. The top line increased 2.5% year over year due to upbeat air-travel demand. This was driven by a 1.6% rise in passenger revenues (which accounted for 91.3% of the top line) to $13.56 billion. Almost 45,559 passengers traveled on UAL flights in the third quarter, up 2.7% year over year.
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