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R's Q4 Earnings Coming Up: What's in the Offing for the Stock?

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Ryder System, Inc. (R - Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 12, before market open.

See the Zacks Earnings Calendar to stay ahead of market-making news.

Ryder has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 11.3%.

The Zacks Consensus Estimate for R’s soon-to-be-reported quarter’s earnings has been revised downward by 0.6% in the past 60 days to $3.42 per share. Meanwhile, the Zacks Consensus Estimate for Ryder’s fourth-quarter 2024 revenues is pegged at $3.36 billion, indicating 11.2% growth year over year.

Ryder System, Inc. Price and EPS Surprise

Ryder System, Inc. Price and EPS Surprise

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

Given this backdrop, let’s explore the factors that are likely to have influenced Ryder’s performance in the fourth quarter of 2024. We expect the top-line performance to have been aided by growth in all business segments. The Zacks Consensus for Fleet Management Solutions’ revenues is pegged at $1.51 billion, indicating a 2% increase from the year-ago reported figure. Higher operating revenues are likely to have aided the segment.

The Zacks Consensus Estimate for Supply-Chain Solutions’ revenues is pegged at $1.39 billion, indicating a 7.04% uptick from the year-ago reported figure. Meanwhile, the Zacks Consensus Estimate for Dedicated Transportation Solutions revenues is pegged at $715.6 million, calling for a more than 100% surge from the year-ago reported figure.

On the flip side, Ryder’s results might be hurt by weaker market conditions in rental and used vehicle sales.

What Our Model Says About Ryder

Our proven model does not conclusively predict an earnings beat for Ryder this time. 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, which is not the case here.

Ryder has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Ryder’s Q3 Highlights

Ryder's third-quarter 2024 earnings per share of $3.44 surpassed the Zacks Consensus Estimate of $3.39. However, the bottom line plunged 3.9% 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. The reported figure lies within the company’s guided range of $3.30-$3.50.

Total revenues of $3.16 billion lagged the Zacks Consensus Estimate of $3.36 billion. The top line improved 8.3% year over year. Operating revenues of $2.59 million grew 9% year over year, reflecting recent acquisitions.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider, as our model shows that these have the right combination of elements to beat estimates in the next earnings release.

FedEx (FDX - Free Report) has an Earnings ESP of +5.75% and a Zacks Rank #3 at present. FDX is set to release third-quarter fiscal 2025 results on March 20.You can see the complete list of today’s Zacks #1 Rank stocks here.

FDX has a discouraging earnings surprise history. It surpassed the Zacks Consensus Estimate thrice in the preceding four quarters and missed once. The average miss is 2.4%.

Golar LNG Limited(GLNG - Free Report) has an Earnings ESP of +11.58% and a Zacks Rank #1 at present. GLNG is set to release fourth-quarter 2024 results on Feb.27

GLNG has an encouraging earnings surprise history. It beat the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average beat is 30.2%.


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