Ryder (R) Q4 Earnings & Revenues Beat Estimates, Down Y/Y
Ryder System, Inc. R fourth-quarter 2023 earnings per share (EPS) of $2.95 per share surpassed the Zacks Consensus Estimate of $2.75. However, the bottom line plunged 24.2% year over year, reflecting weaker market conditions in used vehicle sales and rental, partially offset by improved Supply Chain Solutions results.
Total revenues of $3,023 million outpaced the Zacks Consensus Estimate of $2,944.4 million. However, the top line decreased 2.1% year over year. Results were hurt by lower commercial rental revenues in Fleet Management Solutions. Operating revenues of $2,447 million grew 2% year over year.
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 $1,481 million dipped 7% year over year owing to lower fuel costs passed through to customers and lower operating revenues.
Operating revenues summed $1,271 million, down 4% year over year owing to lower rental demand, partially offset by higher ChoiceLease revenues.
Supply-Chain Solutions: Total revenues of $1,301 million inched up 4% year over year, backed by higher operating revenues, partially offset by lower subcontracted transportation and fuel costs passed through to customers.
Operating revenues rose 10% year over year to $972 million on the back of organic growth from new business, increased pricing, and higher volumes, as well as the acquisition of Impact Fulfillment Services, LLC.
Dedicated Transportation Solutions: Total revenues reached $443 million, down 3% from the year-ago quarter, owing to lower fuel costs and subcontracted transportation passed through to customers, partially offset by higher operating revenues.
Operating revenues climbed 1% to $324 million. The uptick was driven by inflationary cost recovery.
Liquidity
Ryder exited the fourth quarter with cash and cash equivalents of $204 million compared with $159 million at the prior-quarter end. R’s total debt (including the current portion) was $7,114 million at the fourth-quarter end compared with $6,621 million at the end of the prior quarter.
Outlook
For first-quarter 2024, Ryder expects adjusted EPS in the range of $1.55-$1.80.
For 2024, management anticipates total revenues to increase almost 13%. Operating revenues are expected to increase 13%. Adjusted EPS for the year is estimated to be between $11.50 and $12.50. Net cash from operating activities is projected to be $2.4 billion. Adjusted ROE (return on equity) is suggested to be in the 15%-16.5% band. Capital expenditure is estimated to be $3.3 billion.
Currently, Ryder carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s JBHT fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines DAL has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. UAL reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
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