Ryder System Inc.
), one of the world's largest providers of integrated logistics
and transportation solutions, reported third quarter 2013
results. Quarterly adjusted earnings were $1.46 per share, which
surpassed the Zacks Consensus Estimate of $1.44 and escalated 7%
from $1.37 in the year-ago quarter. The year-over-year growth was
driven by improved performance by Supply Chain Solutions and
Fleet Management Solutions segments.
The company registered revenues of $1,634.5 million in the third
quarter, surpassing the Zacks Consensus Estimate of $1,628
million. Comparing year over year, revenues improved 4.0% from
Operating revenues (total revenue less Fleet Management Solutions
fuel and all subcontracted transportation) increased 5% year over
year to $1,344.9 million thanks to business wins reflecting new
business and volume growth in Supply Chain Solutions and growth
in full service lease business.
Fleet Management Solutions
: Total revenue increased 2% year over year to $1,138.2 million
in the third quarter buoyed by 12% growth in contract-related
maintenance revenues. Operating revenues moved up 3% year over
year to $872.2 million.
Supply Chain Solutions
: Total revenue was $610.8 million, up 8% from the year-ago
period. Operating revenues (excluding subcontracted
transportation) grew 9% year over year to $528.3 million.
Liquidity and Capital Expenditure
Ryder System ended the reported quarter with cash and cash
equivalents of $74.9 million compared with $66.4 million at
year-end 2012. The company had long-term debt of $3,686 million,
representing debt-to-equity ratio of 244%. Cash from operations
was $890 million, while net capital expenditure amounted to
For 2013, Ryder narrowed its earnings estimate range to
$4.78-$4.83 per share from previously estimated $4.75-$4.85. For
the fourth quarter, the company estimates earnings at $1.25 to
$1.30 per share.
We believe the company's growth trajectory hinges on improvement
in lease fleet and used vehicle sale. Further, Ryder is
experiencing an improvement in fleet age, implying more renewals
and organic fleet growth. In addition, the company's efforts in
deploying a fuel-efficient fleet remain industry leading and
strengthen its foothold in the rapidly growing market for
environment friendly vehicles.
Despite these positives, the company faces certain headwinds
that may limit its near-term growth. These include unstable
economic conditions, heavy capital expenditures, stiff
competition and federal regulations.
Ryder System operates with the likes of
American Railcar Industries Inc.
The Greenbrier Companies Inc.
). The stock presently carries a Zacks Rank #3 (Hold).
AMER RAILCAR (ARII): Free Stock Analysis
AIRCASTLE LTD (AYR): Free Stock Analysis
GREENBRIER COS (GBX): Free Stock Analysis
RYDER SYS (R): Free Stock Analysis Report
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