Ryder System Tops Q3 Earnings, Lags Revenue Estimates

Ryder System Inc.R reported third-quarter 2015 earnings per share of $1.74 which outpaced the Zacks Consensus Estimate of $1.72 and also improved 6.7% year over year.

This major provider of integrated logistics and transportation solutions registered revenues of $1,669.1 million in the reported quarter, down 1.1% year over year and also below the Zacks Consensus Estimate of $1,717 million. Meanwhile, operating revenues (total revenue less Fleet Management Solutions fuel and all subcontracted transportation) increased 6% year over year to $1,426.5 million.

Segment Results

Fleet Management Solutions: Total revenue fell 2% year over year to $1,157.6 million in the third quarter. Meanwhile, operating revenues moved up 6% year over year to $988.4 million.

Supply Chain Solutions: Total revenue stood at $387.3 million, down 1% from the year-ago quarter. Operating revenues (excluding subcontracted transportation) grew 5% year over year to $318.8 million.

Dedicated Transportation Solutions: Total revenue in the quarter under review came in at $226.9 million, flat year over year. Meanwhile, operating revenues increased 9% year over year to $184.2 million.

Liquidity & Capital Expenditure

Ryder System ended third-quarter 2015 with cash and cash equivalents of $75.4 million compared with $50.1 million recorded at end-2014. The company had long-term debts of $5,450.7 million compared with $4,730.6 million at the end of 2014. At the end of the first nine months of 2015, cash from operations totaled $1,071.3 million compared with $981 million in the same period last year.

Guidance

For 2015, Ryder System raised its earnings per share guidance to $6.45--$6.55, from the previous estimate of $6.17--$6.29. The raised guidance also projects an 11% to 13% rise in earnings from that recorded in 2014. Meanwhile, for the fourth quarter of 2015, the company expects earnings growth in the range of 8% to 14% from $1.59 of earnings per share recorded in the fourth quarter of 2014. Earnings are projected in the range of $1.72 to $1.82 per share.

Stocks to Consider

Ryder System currently has a Zacks Rank #4 (Sell). Better-ranked stocks in the industry include American Airlines Group AAL , Delta Air Lines Inc. DAL and Alaska Air Group, Inc. ALK . All three carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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