Long trade : Ryder System (R) +8% (8/20)

• Aug. 7:  #19; vol. 1.4M

Ryder System (R) reported earnings on Tue 29 Oct 19 (b/o)

** charts before earnings **

 

** charts after earnings **

Ryder System reports EPS in-line, revs in-line; guides FY19 EPS below consensus 

Reports Q3 (Sep) earnings of $1.49 per share, excluding non-recurring items, in-line with the S&P Capital IQ Consensus of $1.49; revenues rose 3.0% year/year to $2.22 bln vs the $2.22 bln S&P Capital IQ Consensus. 

Loss Primarily Results from an Increase in Non-Cash Depreciation Expense of $3.01, Due to a Change in Vehicle Residual Value Estimates of All Power Vehicles Used Vehicle Market Conditions Softened in Late Q2 and Intensified Through Q3, Triggering Review and Change in Residual Value Estimates to Reflect Current Downturn and Lowered Outlook Most Significant Negative Impact Expected This Quarter; Impact Anticipated to Decline Each Quarter Thereafter.

Sees Q4 EPS ($0.03)-0.07 vs. $1.60 consensus

Co issues downside guidance for FY19, sees EPS of $1.00-1.10, excluding non-recurring items, from $5.50-5.80 vs. $5.59 S&P Capital IQ Consensus. 

"As we discussed last quarter, despite market prices for used tractors showing stabilization and improvement in 2018 and early 2019, we began to see a softening in the used tractor market in June. In the third quarter, market conditions continued to worsen for tractors, and we now expect further market declines in the near term. As a result, we lowered our near- and long-term residual value estimates for tractors to better align with recent and expected market conditions. We also adjusted our truck residual estimates for modestly softer conditions. "Overall third quarter revenue and operating results were largely in line with our expectations, except for used vehicle sales results and the impact of related residual value estimate changes. Comparable EBITDA grew by 12% in the quarter, reflecting earnings from contractual growth and cost-savings initiatives.

Ryder System (R) reported earnings on Fri 16 Feb 2018 (b/o)

** charts before earnings **

  

** charts after earnings **

Ryder System beats by $0.01, beats on revs; guides Q1 EPS below consensus; guides FY18 EPS below consensus 

• Reports Q4 (Dec) earnings of $1.37 per share, excluding non-recurring items, $0.01 better thanthe Capital IQ Consensus of $1.36; revenues rose 12.2% year/year to $1.94 bln vs the $1.84 bln Capital IQ Consensus.
• Co issues downside guidance for Q1, sees EPS of 0.83-0.90, excluding non-recurring items, vs. $1.08 Capital IQ Consensus Estimate.
• Co issues downside guidance for FY18, sees EPS of $5.40-5.70, excluding non-recurring items, vs. $6.00 Capital IQ Consensus Estimate.
• "In 2018, we are anticipating solid earnings growth across all business segments. Higher expected earnings are driven by robust contractual revenue growth from record sales results in 2017 as well as the strength of our sales pipeline. We forecast a significant increase in ChoiceLease fleet growth of 6,500 vehicles, driven by a continued trend toward outsourcing, our ongoing sales and marketing initiatives, and a strengthening freight environment. We are also anticipating strong rental revenue growth in this accelerating freight environment. We plan to grow the rental fleet by 6% as well as increase pricing. In DTS and SCS, we are also expecting revenue growth and margin expansion due to improved operating performance. Additionally, we instituted a zero-based budgeting process, significantly lowering overhead costs. We also anticipate 2018 earnings to benefit from Tax Reform, primarily due to a lower effective income tax rate. These expected overhead reductions and tax benefits will improve earnings and fund 2018 strategic investments in sales and marketing, new product development, and technology, which are focused on driving long term revenue and earnings growth."