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Ryder System, Inc. (R - Free Report) ) second-quarter 2024 earnings per share (EPS) of $3.00 surpassed the Zacks Consensus Estimate of $2.88. However, the bottom line plunged 16.9% year over year, reflecting weaker market conditions in rental and used vehicle sales, partially offset by higher earnings in contractual lease, supply chain, and dedicated businesses.
Total revenues of $3.182 billion lagged the Zacks Consensus Estimate of $3.249 billion The top line improved 10% year over year. Operating revenues of $2.561 million grew 10% year over year, reflecting recent acquisitions and contractual revenue growth, partially offset by lower commercial rental revenue in Fleet Management Solutions.
Ryder’s chairman and chief executive officer, Robert Sanchez, stated, "Ryder delivered solid second-quarter results and continued to outperform prior cycles. Comparable EPS were above our forecast primarily reflecting better-than-expected ChoiceLease results. ROE of 16% demonstrated the increased resilience of our transformed business model and is in line with our expectations for the latter stage of a freight-cycle downturn.”
Ryder System, Inc. Price, Consensus and EPS Surprise
Fleet Management Solutions: Total revenues of $1.478 billion inched up 1% year over year owing to higher operating revenues.
Operating revenues summed $1.276 million, up 2% year over year owing to higher ChoiceLease revenues, partially offset by lower rental demand.
Supply-Chain Solutions: Total revenues of $1.341 billion rose 14% year over year, backed by increased operating revenues and higher subcontracted transportation costs passed through to customers.
Operating revenues rose 14% year over year to $989 million, mainly due to recent acquisitions and organic growth across all industry verticals.
Dedicated Transportation Solutions: Total revenues of $635 million and operating revenues of $485 million increased 44% and 48%, year over year, respectively, owing to the Cardinal Logistics acquisition.
Liquidity
Ryder exited the second quarter with cash and cash equivalents of $164 million compared with $234 million at the end of the prior quarter. R’s total debt (including the current portion) was $7.536 billion at the second-quarter end compared with $7.543 billion at the prior-quarter end.
R generated $552 million of net cash from operating activities in the reported quarter.Free cash flow came in at $58 million. Capital expenditures were $638 million.
Dividend Hike
In a shareholder-friendly move, on Jul 12, Ryder’s board of directors approved a dividendhike of 14.1%, thereby raising its quarterly cash dividend to 81 cents per share ($3.24 annualized) from 71 cents ($2.84 annualized). The raised dividend will be paid out on Sep 20, 2024, to shareholders of record at the close of business on Aug 19. The move reflects R’s intention to utilize free cash to enhance its shareholders’ returns.
This marks Ryder’s 192nd consecutive quarterly cash dividend. Notably, Ryder has been making uninterrupted dividend payments for more than 48 years.
Outlook
For third-quarter 2024, Ryder expects adjusted EPS in the range of $3.30-$3.50. The Zacks Consensus Estimate of $3.46 lies within the guidance.
For 2024, Ryder has updated its guidance. Adjusted EPS for the year is now estimated to be between $11.90 and $12.40 (prior view: $11.75 and $12.50). The Zacks Consensus Estimate of $12.17 lies within the guidance.
Adjusted ROE (return on equity) is now suggested in the 16%-16.5% band (prior view: 15.5%-16.5%).
Management now anticipates total revenues to increase by almost 8% (prior view: up 10%). Operating revenues (adjusted) are now forecasted to increase 8% (prior view: up 10%).
Net cash from operating activities is still projected to be $2.4 billion. Capital expenditure is estimated to be $2.9 billion (prior view: $3.2 billion).
So far this year, shares of Ryder have gained 14.7% compared with the industry’s surge of 19.3%.
Image Source: Zacks Investment Research
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’stotal operating revenues of $2.93 billionmissed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.
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Ryder (R) Beats Q2 Earnings Estimates, Tweaks 2024 EPS View
Ryder System, Inc. (R - Free Report) ) second-quarter 2024 earnings per share (EPS) of $3.00 surpassed the Zacks Consensus Estimate of $2.88. However, the bottom line plunged 16.9% year over year, reflecting weaker market conditions in rental and used vehicle sales, partially offset by higher earnings in contractual lease, supply chain, and dedicated businesses.
Total revenues of $3.182 billion lagged the Zacks Consensus Estimate of $3.249 billion The top line improved 10% year over year. Operating revenues of $2.561 million grew 10% year over year, reflecting recent acquisitions and contractual revenue growth, partially offset by lower commercial rental revenue in Fleet Management Solutions.
Ryder’s chairman and chief executive officer, Robert Sanchez, stated, "Ryder delivered solid second-quarter results and continued to outperform prior cycles. Comparable EPS were above our forecast primarily reflecting better-than-expected ChoiceLease results. ROE of 16% demonstrated the increased resilience of our transformed business model and is in line with our expectations for the latter stage of a freight-cycle downturn.”
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 $1.478 billion inched up 1% year over year owing to higher operating revenues.
Operating revenues summed $1.276 million, up 2% year over year owing to higher ChoiceLease revenues, partially offset by lower rental demand.
Supply-Chain Solutions: Total revenues of $1.341 billion rose 14% year over year, backed by increased operating revenues and higher subcontracted transportation costs passed through to customers.
Operating revenues rose 14% year over year to $989 million, mainly due to recent acquisitions and organic growth across all industry verticals.
Dedicated Transportation Solutions: Total revenues of $635 million and operating revenues of $485 million increased 44% and 48%, year over year, respectively, owing to the Cardinal Logistics acquisition.
Liquidity
Ryder exited the second quarter with cash and cash equivalents of $164 million compared with $234 million at the end of the prior quarter. R’s total debt (including the current portion) was $7.536 billion at the second-quarter end compared with $7.543 billion at the prior-quarter end.
R generated $552 million of net cash from operating activities in the reported quarter.Free cash flow came in at $58 million. Capital expenditures were $638 million.
Dividend Hike
In a shareholder-friendly move, on Jul 12, Ryder’s board of directors approved a dividendhike of 14.1%, thereby raising its quarterly cash dividend to 81 cents per share ($3.24 annualized) from 71 cents ($2.84 annualized). The raised dividend will be paid out on Sep 20, 2024, to shareholders of record at the close of business on Aug 19. The move reflects R’s intention to utilize free cash to enhance its shareholders’ returns.
This marks Ryder’s 192nd consecutive quarterly cash dividend. Notably, Ryder has been making uninterrupted dividend payments for more than 48 years.
Outlook
For third-quarter 2024, Ryder expects adjusted EPS in the range of $3.30-$3.50. The Zacks Consensus Estimate of $3.46 lies within the guidance.
For 2024, Ryder has updated its guidance. Adjusted EPS for the year is now estimated to be between $11.90 and $12.40 (prior view: $11.75 and $12.50). The Zacks Consensus Estimate of $12.17 lies within the guidance.
Adjusted ROE (return on equity) is now suggested in the 16%-16.5% band (prior view: 15.5%-16.5%).
Management now anticipates total revenues to increase by almost 8% (prior view: up 10%). Operating revenues (adjusted) are now forecasted to increase 8% (prior view: up 10%).
Net cash from operating activities is still projected to be $2.4 billion. Capital expenditure is estimated to be $2.9 billion (prior view: $3.2 billion).
Zacks Rank and Price Performance
Currently, Ryder carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So far this year, shares of Ryder have gained 14.7% compared with the industry’s surge of 19.3%.
Image Source: Zacks Investment Research
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’stotal operating revenues of $2.93 billionmissed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.