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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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RYDER SYS (R): Free Stock Analysis Report

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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.


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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