Ryder System Inc.
), one of the world's largest providers of integrated logistics
and transportation solutions, reported first quarter 2013
results. Quarterly adjusted earnings were 81 cents per share,
which surpassed the Zacks Consensus Estimate of 78 cents and
increased 17.4% from 69 cents in the year-ago quarter. The year
over year growth remained driven by strong performance across all
Adjusted earnings excluded the negative impact of 2 cents related
to non-operating pension costs.
The company registered revenues of $1,563 million in the first
quarter, missing the Zacks Consensus Estimate of $1,571 million.
Comparing year over year, the results improved 2% from $1,536.3
Operating revenue (total revenue less Fleet Management Solutions
fuel and all subcontracted transportation) increased 3% year over
year to $1,267.5 million, driven by full service lease growth on
an organic basis along with increased volumes and new business in
the Supply Chain Solutions segment.
Fleet Management Solutions
: Total revenue increased 3% year over year to $1,099.7 million
in the first quarter. The growth was based on higher
Contract-related maintenance and Other revenues that increased
15% and 5%, respectively. Operating revenue for the segment moved
up 4% year over year to $824 million.
Supply Chain Solutions
: The segment includes operational activities of the company's
Dedicated Contract Carriage business. Total revenue was $576.5
million, up 1% from the year-ago period. Operating revenue
(excluding subcontracted transportation) grew 2% year over year
to $494.8 million. The year-over-year growth was primarily based
on higher volumes in automotive and dedicated services offset by
declining volumes of high-tech products.
Liquidity and Capital Expenditure
Ryder System ended the reported quarter with cash and cash
equivalents of $76.5 million compared with $66.4 at year-end
2012. Cash from operations was $249 million compared with $186
million in the year-ago quarter, while net capital expenditure
amounted to $449 million compared with $787 in the year-ago
quarter. The company had long-term debt of $3,585.9 million,
representing debt-to-equity ratio of 258%.
For 2013, Ryder maintained its earning estimate in the range of
$4.70 to $4.85 per share, reflecting year-over-year growth of 7%
to 10%. For the second quarter of 2013, the company estimates
earnings of $1.20 to $1.24 per share.
Ryder System continues to benefit from fleet management services
and used vehicle sales. In addition, strategic acquisitions and
increased investments on vehicles provide long-term growth
opportunities for the company.
Further, healthy shareholder returns such as dividends and
share repurchases make the stock attractive to investors.
However, financial headwinds, heavy capital expenditures,
competition and ongoing economic uncertainties may limit
near-term growth for the company.
AMER RAILCAR (ARII): Free Stock Analysis
FLY LEASING LTD (FLY): Free Stock Analysis
GREENBRIER COS (GBX): Free Stock Analysis
RYDER SYS (R): Free Stock Analysis Report
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Ryder System operates with the likes of
American Railcar Industries, Inc.
FLY Leasing Limited
The Greenbrier Companies, Inc.
). It presently holds a Zacks Rank #3 (Hold).