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Friday, February 16, 2018

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."

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