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Ryder (R) Up 2.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Ryder (R - Free Report) . Shares have added about 2.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ryder due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ryder Beats Q2 Earnings Estimates
Ryder’s second-quarter 2021 earnings (excluding 37 cents from non-recurring items) of $2.40 per share surpassed the Zacks Consensus Estimate of $1.33. In the year-ago period, the company had incurred a loss of 95 cents per share due to coronavirus-led woes.
Total revenues of $2,382.2 million also outperformed the Zacks Consensus Estimate of $2,219.9 million. The top line increased 26% year over year due to strong performances across all segments.
Segmental Results
Fleet Management Solutions (FMS): Total revenues in the segment amounted to $1,408 million, up 18% year over year. Operating revenues (excluding fuel and lease liability insurance revenues) summed $1,225 million, up 14% year over year. Segmental results benefited from higher rental and ChoiceLease revenues, as well as from higher fuel pricing. While commercial rental revenues increased 58% year over year, fuel services revenues jumped 57%. ChoiceLease revenues climbed 5%, while SelectCare revenues rose 8%.
Dedicated Transportation Solutions (DTS): Total revenues amounted to $335 million, up 21% from the year-ago quarter’s figure. The performance was driven by new business and higher volumes. Operating revenues (excluding fuel and subcontracted transportation) increased 12% year over year to $256 million.
Supply Chain Solutions (SCS): Total revenues in the segment were $776 million, up 49% year over year. Operating revenues (excluding fuel and subcontracted transportation) rose 32% year over year to $535 million. Segmental results were driven by new business and higher volumes.
Other Details
Ryderexited the second quarter with cash and cash equivalents of $268 million compared with $151.3 million at the end of 2020. The company’s total debt (including current portion) fell to $6,235.7 million at the end of the second quarter from $6,610.2 million at the end of 2020.
During the first half of 2021, gross capital expenditures increased to $963 million compared with $597 million in the year-ago period due to higher investments on rental fleet. Free cash flow in the period was $602 million, down from $612 million in the first half of 2020. The decline was due to increase in cash paid for capital expenditures.
Ryder anticipates cash flow from operating activities to be $2.2 billion in the current year.Capital expenditures are predicted to be in the range of $2.2-$2.3 billion (previous guidance: $2-$2.3 billion) in the current year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 22.69% due to these changes.
VGM Scores
At this time, Ryder has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ryder has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Ryder (R) Up 2.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Ryder (R - Free Report) . Shares have added about 2.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ryder due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ryder Beats Q2 Earnings Estimates
Ryder’s second-quarter 2021 earnings (excluding 37 cents from non-recurring items) of $2.40 per share surpassed the Zacks Consensus Estimate of $1.33. In the year-ago period, the company had incurred a loss of 95 cents per share due to coronavirus-led woes.
Total revenues of $2,382.2 million also outperformed the Zacks Consensus Estimate of $2,219.9 million. The top line increased 26% year over year due to strong performances across all segments.
Segmental Results
Fleet Management Solutions (FMS): Total revenues in the segment amounted to $1,408 million, up 18% year over year. Operating revenues (excluding fuel and lease liability insurance revenues) summed $1,225 million, up 14% year over year. Segmental results benefited from higher rental and ChoiceLease revenues, as well as from higher fuel pricing. While commercial rental revenues increased 58% year over year, fuel services revenues jumped 57%. ChoiceLease revenues climbed 5%, while SelectCare revenues rose 8%.
Dedicated Transportation Solutions (DTS): Total revenues amounted to $335 million, up 21% from the year-ago quarter’s figure. The performance was driven by new business and higher volumes. Operating revenues (excluding fuel and subcontracted transportation) increased 12% year over year to $256 million.
Supply Chain Solutions (SCS): Total revenues in the segment were $776 million, up 49% year over year. Operating revenues (excluding fuel and subcontracted transportation) rose 32% year over year to $535 million. Segmental results were driven by new business and higher volumes.
Other Details
Ryderexited the second quarter with cash and cash equivalents of $268 million compared with $151.3 million at the end of 2020. The company’s total debt (including current portion) fell to $6,235.7 million at the end of the second quarter from $6,610.2 million at the end of 2020.
During the first half of 2021, gross capital expenditures increased to $963 million compared with $597 million in the year-ago period due to higher investments on rental fleet. Free cash flow in the period was $602 million, down from $612 million in the first half of 2020. The decline was due to increase in cash paid for capital expenditures.
Ryder anticipates cash flow from operating activities to be $2.2 billion in the current year.Capital expenditures are predicted to be in the range of $2.2-$2.3 billion (previous guidance: $2-$2.3 billion) in the current year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 22.69% due to these changes.
VGM Scores
At this time, Ryder has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ryder has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.