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Ryder (R) Q4 Earnings and Revenues Top Estimates, Rise Y/Y
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Ryder System, Inc. (R - Free Report) reported better-than-expected fourth-quarter 2022 results, wherein earnings and revenues outperformed the Zacks Consensus Estimate.
Quarterly earnings of $3.89 per share surpassed the Zacks Consensus Estimate of $3.60. The bottom line increased 10.5% year over year on the back of higher revenues.
Total revenues of $3,088 million also outperformed the Zacks Consensus Estimate of $2,971.7 million. The top line increased 18.7% year over year on strong segmental performances.
Ryder System, Inc. Price, Consensus and EPS Surprise
Fleet Management Solutions: Total revenues of $1,595 million were up 6% year over year. Operating revenues summed $1,321 million, up 2% year over year. Segmental revenues benefited from higher rental revenues, driven by strong demand and higher pricing. Revenues also increased on higher fuel pricing.
Supply-Chain Solutions: Total revenues in the segment were $1,251 million, up 44% year over year. Operating revenues rose 44% year over year to $883 million on the back of contributions from acquisitions and double-digit revenue growth in all industry verticals from new business, higher volumes and increased pricing.
Dedicated Transportation Solutions: Total revenues amounted to $456 million, up 13% from the year-ago quarter. Operating revenues climbed 10% to $320 million. The revenue uptick was driven byhigher pricing and volumes.
Liquidity
Ryder exited the fourth quarter with cash and cash equivalents of $267 million compared with $456.3 million at the end of September 2022. R’s total debt (including the current portion) was $1,967million at the end of the fourth quarter compared with $6,334.1 reported at the end of September 2022.
In the fourth quarter, Ryder repurchased 2 million shares for $179 million under its completed 2021 Discretionary program. Additionally, the company repurchased 0.9 million shares for $78 million under its 2021 Anti-Dilutive program. In February 2023, Ryder’s board approved a new 2-million share discretionary repurchase program.
Outlook
For the first quarter of 2023, Ryder expects adjusted earnings per share of $2.75-$3.00.
For 2023, Ryder expects total revenues and operating revenues to increase 2% and 4%, respectively. Adjusted EPS for the year is estimated to be $11.05-$12.05.
R expects a free cash flow of $200 million for 2023. Net cash from operating activities is expected to be $2.4 billion. Adjusted ROE (return on investment) is expected to be 16-18%. Capital expenditure is estimated to be $3 billion.
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year, owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from the fourth-quarter 2019 (pre-coronavirus) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2022 earnings of $1.92 per share missed the Zacks Consensus Estimate of $2.45 and declined 16% year over year.
JBHT’s total operating revenues of $3,649.62 million also lagged the Zacks Consensus Estimate of $3,796.8 million. The top line jumped 4.4% year over year. Total operating revenues, excluding fuel surcharges, fell 2.9% year over year.
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Ryder (R) Q4 Earnings and Revenues Top Estimates, Rise Y/Y
Ryder System, Inc. (R - Free Report) reported better-than-expected fourth-quarter 2022 results, wherein earnings and revenues outperformed the Zacks Consensus Estimate.
Quarterly earnings of $3.89 per share surpassed the Zacks Consensus Estimate of $3.60. The bottom line increased 10.5% year over year on the back of higher revenues.
Total revenues of $3,088 million also outperformed the Zacks Consensus Estimate of $2,971.7 million. The top line increased 18.7% year over year on strong segmental performances.
Ryder System, Inc. Price, Consensus and EPS Surprise
Ryder System, Inc. price-consensus-eps-surprise-chart | Ryder System, Inc. Quote
Segmental Result
Fleet Management Solutions: Total revenues of $1,595 million were up 6% year over year. Operating revenues summed $1,321 million, up 2% year over year. Segmental revenues benefited from higher rental revenues, driven by strong demand and higher pricing. Revenues also increased on higher fuel pricing.
Supply-Chain Solutions: Total revenues in the segment were $1,251 million, up 44% year over year. Operating revenues rose 44% year over year to $883 million on the back of contributions from acquisitions and double-digit revenue growth in all industry verticals from new business, higher volumes and increased pricing.
Dedicated Transportation Solutions: Total revenues amounted to $456 million, up 13% from the year-ago quarter. Operating revenues climbed 10% to $320 million. The revenue uptick was driven byhigher pricing and volumes.
Liquidity
Ryder exited the fourth quarter with cash and cash equivalents of $267 million compared with $456.3 million at the end of September 2022. R’s total debt (including the current portion) was $1,967million at the end of the fourth quarter compared with $6,334.1 reported at the end of September 2022.
In the fourth quarter, Ryder repurchased 2 million shares for $179 million under its completed 2021 Discretionary program. Additionally, the company repurchased 0.9 million shares for $78 million under its 2021 Anti-Dilutive program. In February 2023, Ryder’s board approved a new 2-million share discretionary repurchase program.
Outlook
For the first quarter of 2023, Ryder expects adjusted earnings per share of $2.75-$3.00.
For 2023, Ryder expects total revenues and operating revenues to increase 2% and 4%, respectively. Adjusted EPS for the year is estimated to be $11.05-$12.05.
R expects a free cash flow of $200 million for 2023. Net cash from operating activities is expected to be $2.4 billion. Adjusted ROE (return on investment) is expected to be 16-18%. Capital expenditure is estimated to be $3 billion.
Currently, Ryder carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year, owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from the fourth-quarter 2019 (pre-coronavirus) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2022 earnings of $1.92 per share missed the Zacks Consensus Estimate of $2.45 and declined 16% year over year.
JBHT’s total operating revenues of $3,649.62 million also lagged the Zacks Consensus Estimate of $3,796.8 million. The top line jumped 4.4% year over year. Total operating revenues, excluding fuel surcharges, fell 2.9% year over year.