Ryder System (R) Tops Earnings & Revenue Estimates In Q2

Ryder System (NYSE:R) performed well in the second quarter of 2017 reporting better-than-expected earnings per share and revenues.

The transportation company’s adjusted earnings of $1 per share beat the Zacks Consensus Estimate of 93 cents. Earnings, however, declined 36% on a year-over-year basis.

Ryder System reported total revenue of $1,793.2 million, which surpassed the Zacks Consensus Estimate of $1,769.2 million. Revenues increased 5% on a year-over-year basis with growth being witnessed in all segments.

Segment Results

Fleet Management Solutions: Total revenue was $1.16 billion, up 1% year over year. Operating revenues (revenues excluding fuel) came in at $1 billion, flat year over year. Segmental results were aided by an increase in lease revenues on the back of a larger average fleet size.

Dedicated Transportation Solutions: Total revenue came in at $273 million, up 6% from the year-ago quarter. Operating revenues (excluding fuel and subcontracted transportation) grew 3% year over year to $200 million.

Supply Chain Solutions: Total revenue in the quarter under review was $471 million, up 17% year over year. Operating revenues (revenues excluding fuel and subcontracted transportation) increased 8% year over year to $359 million.

Liquidity

Ryder System, which carries a Zacks Rank #2 (Buy), exited the second quarter with cash and cash equivalents of $55.4 million compared with $58.8 million at the end of 2016. The company had total debt of $5,384.8 million compared with $5,391.3 million at the end of 2016. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Guidance

The company now expects 2017 adjusted earnings in the band of $4.38 to $4.58 per share compared with the previous range of $4.25 to $4.55. The Zacks Consensus Estimate for 2017 is pegged at $4.37 per share. It expects third-quarter 2017 adjusted earnings per share in the band of $1.25 to $1.35. The Zacks Consensus Estimate for the third quarter is pegged at $1.36 per share.

Other Important Releases Coming Up

Investors interested in the broader Transportation space keenly await the second-quarter earnings reports of SkyWest, Inc. (NASDAQ:SKYW) , Spirit Airlines (NASDAQ:SAVE) and American Airlines Group (NASDAQ:AAL) . While SkyWest and Spirit Airlines are scheduled to report results on Jul 27, American Airlines will unveil its earnings report on Jul 28.

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