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Ryder System, Inc. (R - Free Report) reported mixed first-quarter 2023 results, wherein earnings missed the Zacks Consensus Estimate, but revenues beat the same.
Quarterly earnings (excluding 13 cents from non-recurring items) of $2.81 per share missed the Zacks Consensus Estimate of $2.96. The bottom line plunged 21.7% year over year owing to lower results in Fleet Management Solutions and a Supply Chain Solutions asset impairment.
On the flip side, total revenues of $2,952 million outperformed the Zacks Consensus Estimate of $2,933.8 million. The top line increased 3.4% year over year on strong segmental performances.
Ryder System, Inc. Price, Consensus and EPS Surprise
Fleet Management Solutions: Total revenues of $1,503 million were down 2% year over year. Operating revenues summed $1,262 million, down 2% year over year. Segmental revenues were hurt by negative impact of operating revenues from UK exit.
Supply-Chain Solutions: Total revenues were $1,201 million, up 10% year over year. Operating revenues rose 19% year over year to $879 million on the back of strong revenue growth in all industry verticals, primarily reflecting new business, higher volumes and increased pricing.
Dedicated Transportation Solutions: Total revenues amounted to $454 million, up 7% from the year-ago quarter. Operating revenues climbed 9% to $322 million. The revenue uptick was driven by higher pricing and volumes.
Liquidity & Capital Expenditure
Ryder exited the first quarter with cash and cash equivalents of $253 million compared with $267 million at the end of December 2022. R’s total debt (including the current portion) was $6,340 million at first-quarter end compared with $6,352 million reported at the end of December 2022.
March quarter’s capital expenditures increased to $802 million from $662 million in first-quarter 2022 due to higher planned investments in the lease fleet.
Outlook
For the second quarter of 2023, Ryder expects adjusted earnings per share in the range of $2.80-$3.05. The midpoint of the guided range ($2.925) is below the Zacks Consensus Estimate of $3.17.
For 2023, Ryder expects total revenues and operating revenues to increase 1% and 4%, respectively. Adjusted EPS for the year is now estimated to be $11.30-$12.05 (prior view: $11.05-$12.05). The midpoint of the guided range ($11.675) is below the Zacks Consensus Estimate of $11.93.
R still expects a free cash flow of $200 million for 2023. Net cash from operating activities is still projected to be $2.4 billion. Adjusted ROE (return on investment) is still anticipated to be 16-18%. Capital expenditure is still estimated to be $3 billion.
Q1 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) also added to the woes.
Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 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 $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. However, driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
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Ryder (R) Lags Q1 Earnings Estimates, Tweaks 2023 EPS View
Ryder System, Inc. (R - Free Report) reported mixed first-quarter 2023 results, wherein earnings missed the Zacks Consensus Estimate, but revenues beat the same.
Quarterly earnings (excluding 13 cents from non-recurring items) of $2.81 per share missed the Zacks Consensus Estimate of $2.96. The bottom line plunged 21.7% year over year owing to lower results in Fleet Management Solutions and a Supply Chain Solutions asset impairment.
On the flip side, total revenues of $2,952 million outperformed the Zacks Consensus Estimate of $2,933.8 million. The top line increased 3.4% 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 Results
Fleet Management Solutions: Total revenues of $1,503 million were down 2% year over year. Operating revenues summed $1,262 million, down 2% year over year. Segmental revenues were hurt by negative impact of operating revenues from UK exit.
Supply-Chain Solutions: Total revenues were $1,201 million, up 10% year over year. Operating revenues rose 19% year over year to $879 million on the back of strong revenue growth in all industry verticals, primarily reflecting new business, higher volumes and increased pricing.
Dedicated Transportation Solutions: Total revenues amounted to $454 million, up 7% from the year-ago quarter. Operating revenues climbed 9% to $322 million. The revenue uptick was driven by higher pricing and volumes.
Liquidity & Capital Expenditure
Ryder exited the first quarter with cash and cash equivalents of $253 million compared with $267 million at the end of December 2022. R’s total debt (including the current portion) was $6,340 million at first-quarter end compared with $6,352 million reported at the end of December 2022.
March quarter’s capital expenditures increased to $802 million from $662 million in first-quarter 2022 due to higher planned investments in the lease fleet.
Outlook
For the second quarter of 2023, Ryder expects adjusted earnings per share in the range of $2.80-$3.05. The midpoint of the guided range ($2.925) is below the Zacks Consensus Estimate of $3.17.
For 2023, Ryder expects total revenues and operating revenues to increase 1% and 4%, respectively. Adjusted EPS for the year is now estimated to be $11.30-$12.05 (prior view: $11.05-$12.05). The midpoint of the guided range ($11.675) is below the Zacks Consensus Estimate of $11.93.
R still expects a free cash flow of $200 million for 2023. Net cash from operating activities is still projected to be $2.4 billion. Adjusted ROE (return on investment) is still anticipated to be 16-18%. Capital expenditure is still estimated to be $3 billion.
Currently, Ryder carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) also added to the woes.
Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 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 $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. However, driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.