Integrated logistics and transportation solutions,
Ryder Systems Inc.
) is set to release its third-quarter 2013 results before the
opening bell on Oct 22, 2013.
In the last quarter, the company delivered a 2.46% earnings
surprise. Let's see how things are shaping up for this
Factors to be Considered this Quarter
We remain encouraged about Ryder's organic growth across its
business line. Strong market demand along with a tighter truck
market is allowing the company to charge more thus boosting the
earning prospect. The Florida-based company expects enhanced
offerings in contractual product lines in the fleet management
segment with a newer lease fleet and various maintenance
initiatives to improve 2013 earnings.
An extended freight recession has forced the company to
downsize its lease and contract maintenance customers. However,
downsizing its customer fleet may affect the company's full
service lease business going forward. Stiff completion also
remains a threat to Ryder as it could create downward pressure on
rates and thereafter affect margins.
Our proven model does not conclusively show that Ryder is
likely to beat the Zacks Consensus Estimate this quarter. This is
because a stock needs to have both a positive
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to
happen. Unfortunately, this is not the case here as elaborated
Negative Zacks ESP:
This is because the Most Accurate Estimate stands at $1.43 while
the Zacks Consensus Estimate is higher at $1.44. This leads to an
ESP of -0.69% for Ryder.
Ryder's Zacks Rank #3 (Hold), however, increases the predictive
power of ESP. However, we also need to have a positive ESP to be
confident of an earnings surprise call.
We caution investors against the stock going into the earnings
announcement, as a Zacks earnings ESP of -0.69% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some companies to consider as our model shows these
have the right combination of elements to post an earnings beat
XPO Logistics Inc.
) has earnings ESP of +20.46% and carries a Zacks Rank #3
)has earnings ESP of +0.90% and carries a Zacks Rank #3
) has earnings ESP of +0.62% and carries a Zacks Rank #3
FEDEX CORP (FDX): Free Stock Analysis Report
KANSAS CITY SOU (KSU): Free Stock Analysis
RYDER SYS (R): Free Stock Analysis Report
XPO LOGISTICS (XPO): Free Stock Analysis
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