Back to top

Image: Bigstock

Ryder System (R) to Report Q3 Earnings: What's in Store?

Read MoreHide Full Article

Ryder System, Inc. (R - Free Report) is slated to release third-quarter 2023 earnings on Oct 25, before market open.

R has an impressive surprise history. Its earnings outperformed the Zacks Consensus Estimate in three of the preceding four quarters (missed once), the average beat being 11.2%.

Given this backdrop, let's delve deeper to unearth the factors likely to have influenced R’s third-quarter 2023 performance.

The Zacks Consensus Estimate for third-quarter revenues has dipped marginally year over year, reflecting weak market conditions pertaining to used vehicle sales and rental. Soft sales might have hurt results.

Ryder System, Inc. Price and EPS Surprise

Ryder System, Inc. Price and EPS Surprise

Ryder System, Inc. price-eps-surprise | Ryder System, Inc. Quote

Higher capital expenses are expected to have affected the bottom line. Our estimate for third-quarter 2023 expenses indicates a rise of 8% year over year. The Zacks Consensus Estimate for third-quarter earnings has plunged 24.1% year over year.

What Our Model Says

Our proven model conclusively predicts an earnings beat for R this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Ryder has an Earnings ESP of +5.48% and sports a Zacks Rank #1.

Highlights of Q2

Ryder reported quarterly earnings (excluding $4.01 from non-recurring items) of $3.61 per share, which surpassed the Zacks Consensus Estimate of $2.97. However, the bottom line tumbled 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.

Other Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their third-quarter 2023 earnings.

Golar LNG Limited (GLNG - Free Report) has an Earnings ESP of +18.00% and flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

GLNG is scheduled to release third-quarter 2023 results on Nov 21. Golar LNG's efforts to reward its shareholders through share buybacks look encouraging.

United Parcel Service, Inc. (UPS - Free Report) has an Earnings ESP of +0.41% and a Zacks Rank #3. UPS is set to post third-quarter 2023 numbers on Oct 26.

We are encouraged by UPS' solid free cash flow. In the first half of 2023, UPS generated a free cash flow of $3.8 billion.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


United Parcel Service, Inc. (UPS) - free report >>

Ryder System, Inc. (R) - free report >>

Golar LNG Limited (GLNG) - free report >>

Published in