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Ryder System, Inc. (R - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.
Quarterly earnings (excluding $4.01 from non-recurring items) of $3.61 per share surpassed the Zacks Consensus Estimate of $2.97. However, the bottom line plunged 18.5% year over year largely reflecting weaker market conditions in used vehicle sales and rental.
Total revenues of $2,884 million missed the Zacks Consensus Estimate of $3000.8 million. The top line decreased 4.9% year over year.
Ryder System, Inc. Price, Consensus and EPS Surprise
Fleet Management Solutions: Total revenues of $1,459 million were down 10% year over year. The actual percentage of decline was steeper than our expectation of a 3.7% year-over-year fall. Operating revenues summed $1,254 million, down 4% year over year. Segmental revenues were hurt by negative impact of operating revenues from UK exit.
Supply-Chain Solutions: Total revenues of $1,179 million remained flat year over year. We estimated a 2% rise from second-quarter 2022 actuals. Operating revenues rose 8% year over year to $865 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 $440 million, down 2% from the year-ago quarter. The actual percentage of decrease was steeper than our projection of a 0.1% year-over-year dip. Operating revenues climbed 7% to $327 million. The uptick was driven by inflationary cost recovery and higher volumes.
Liquidity
Ryder exited the second quarter with cash and cash equivalents of $218 million compared with $267 million at the end of December 2022. R’s total debt (including the current portion) was $6,525 million at second-quarter end compared with $6,352 million reported at the end of December 2022.
Q3 & 2023 Outlook
For third-quarter 2023, Ryder expects adjusted earnings per share in the range of $3.00-$3.25. The Zacks Consensus Estimate of $2.97 is below the guided range.
For 2023, management anticipates total revenues to decrease by 2% while operating revenues to increase by 2%. Adjusted EPS for the year is now estimated to be between $12.20 and $12.70 (prior view: $11.30-$12.05). The Zacks Consensus Estimate of $11.73 is below the guided range.
R now estimates free cash flow of $100 million for 2023 (prior view: $200 million). Net cash from operating activities is projected to be $2.5 billion (prior view: $2.4 billion). Adjusted ROE (return on equity) is still suggested in the 17-19% band (prior view: 16-18%). Capital expenditure is still estimated to be $3.2 billion (prior view: $3 billion).
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year. Total operating revenues of $3,132.6 million also missed the Zacks Consensus Estimate of $3,347.5 million. The top line fell 18.4% year over year.
The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal and 21% in Truckload. A 4% decrease in productivity in Dedicated Capacity Solutions added to the woes. Changes in customer rate, freight mix and lower fuel surcharge revenues resulted in this downtick.
Delta Air Lines’ (DAL - Free Report) second-quarter 2023 earnings (excluding 16 cents from non-recurring items) of $2.68 per share comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported earnings of $1.44 a year ago.
Revenues of $15,578 million outshined the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis driven by higher air-travel demand. The adjusted operating margin was 17.1% compared with 11.7% in the prior-year period.
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Ryder (R) Beats Q2 Earnings Estimates, Tweaks 2023 EPS View
Ryder System, Inc. (R - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.
Quarterly earnings (excluding $4.01 from non-recurring items) of $3.61 per share surpassed the Zacks Consensus Estimate of $2.97. However, the bottom line plunged 18.5% year over year largely reflecting weaker market conditions in used vehicle sales and rental.
Total revenues of $2,884 million missed the Zacks Consensus Estimate of $3000.8 million. The top line decreased 4.9% year over year.
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 $1,459 million were down 10% year over year. The actual percentage of decline was steeper than our expectation of a 3.7% year-over-year fall. Operating revenues summed $1,254 million, down 4% year over year. Segmental revenues were hurt by negative impact of operating revenues from UK exit.
Supply-Chain Solutions: Total revenues of $1,179 million remained flat year over year. We estimated a 2% rise from second-quarter 2022 actuals. Operating revenues rose 8% year over year to $865 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 $440 million, down 2% from the year-ago quarter. The actual percentage of decrease was steeper than our projection of a 0.1% year-over-year dip. Operating revenues climbed 7% to $327 million. The uptick was driven by inflationary cost recovery and higher volumes.
Liquidity
Ryder exited the second quarter with cash and cash equivalents of $218 million compared with $267 million at the end of December 2022. R’s total debt (including the current portion) was $6,525 million at second-quarter end compared with $6,352 million reported at the end of December 2022.
Q3 & 2023 Outlook
For third-quarter 2023, Ryder expects adjusted earnings per share in the range of $3.00-$3.25. The Zacks Consensus Estimate of $2.97 is below the guided range.
For 2023, management anticipates total revenues to decrease by 2% while operating revenues to increase by 2%. Adjusted EPS for the year is now estimated to be between $12.20 and $12.70 (prior view: $11.30-$12.05). The Zacks Consensus Estimate of $11.73 is below the guided range.
R now estimates free cash flow of $100 million for 2023 (prior view: $200 million). Net cash from operating activities is projected to be $2.5 billion (prior view: $2.4 billion). Adjusted ROE (return on equity) is still suggested in the 17-19% band (prior view: 16-18%). Capital expenditure is still estimated to be $3.2 billion (prior view: $3 billion).
Currently, Ryder carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performance of Other Players
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year. Total operating revenues of $3,132.6 million also missed the Zacks Consensus Estimate of $3,347.5 million. The top line fell 18.4% year over year.
The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal and 21% in Truckload. A 4% decrease in productivity in Dedicated Capacity Solutions added to the woes. Changes in customer rate, freight mix and lower fuel surcharge revenues resulted in this downtick.
Delta Air Lines’ (DAL - Free Report) second-quarter 2023 earnings (excluding 16 cents from non-recurring items) of $2.68 per share comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported earnings of $1.44 a year ago.
Revenues of $15,578 million outshined the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis driven by higher air-travel demand. The adjusted operating margin was 17.1% compared with 11.7% in the prior-year period.