Ryder(R) Earnings and Revenue Beat in Q4, Q1 ’22 EPS View Upbeat


Ryder systemR’s fourth-quarter 2021 earnings (excluding 17 cents of one-time items) of $3.52 per share beat Zacks’ consensus estimate of $2.49. Net income increased significantly year over year thanks to higher revenues.

Total revenue of $2,600 million also topped Zacks’ consensus estimate of $2,462.4 million. Revenue increased 17.5% year-on-year driven by strong segment performance.

Sector results

Fleet management solutions: Total revenue of $1,499 million increased 12% year over year. Operating revenue (excluding fuel and tenant liability insurance revenue) totaled $1.3 trillion, up 9% year-over-year. Segment revenues benefited from higher rental income thanks to strong demand and favorable pricing. Revenues also increased due to higher fuel prices. Within this segment, commercial leasing revenue grew 35% year-over-year, while fuel service revenue jumped 42%. ChoiceLease revenue increased 1% while SelectCare and other revenue climbed 11%.

Dedicated transport solutions: Total revenue was $402 million, up 33% from the prior year quarter. Operating revenue (excluding fuel and contracted transportation) climbed 26% to $291 million. Revenue growth was driven by new business, favorable pricing and higher volumes.

Supply Chain Solutions: Total segment revenue was $870 million, up 22% year-over-year. Operating revenue (excluding fuel and outsourced transportation) increased 21% year-over-year to $614 million driven by revenue growth across all industry verticals.

Ryder System, Inc. Price, Consensus, and EPS Surprise

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

Other details

Ryder, who currently carries a Zacks rank of No. 2 (buy), exited the fourth quarter with cash and cash equivalents of $234 million, compared to $151.3 million at the end of 2020. Total Debt of the company (including the current portion) fell to $6,579.7 million at the end of the fourth quarter, from $6,610.2 million at the end of 2020.

In 2021, gross capital expenditure increased to $2 billion, from $1.1 billion a year ago, due to higher investment in the rental fleet. Free cash flow in 2021 was $1.1 billion, compared to $1.6 billion in 2020.

Due to an optimistic outlook for 2022, Ryder plans to launch an accelerated $300 million share buyback program.

Outlook 2022

Ryder expects total revenue as well as operating revenue to grow about 10% in 2022. Adjusted earnings per share for the full year is estimated to be between $11 and $12. The Zacks consensus estimate for the same is pegged at $9.15. The company forecasts free cash flow of $200 to $300 million in 2022. Capital expenditures are expected to be between $2.7 and $2.8 billion.

For the first quarter of 2022, adjusted earnings are expected to be between $2.20 and $2.35 per share. The midpoint of the guided range — $2.27 — is above the Zacks Consensus estimate of $2.25.

Sector insights

Let’s take a look at some of the other company earnings releases from the Zacks Transportation industry.

Werner Enterprises WERN, carrying a Zacks Rank #3 (Hold), reported fourth quarter 2021 earnings (excluding 2 cents of one-time items) of $1.13 per share, which beat the Zacks consensus estimate of 96 cents. Net profit increased by 27% on an annual basis.

Werner’s total earnings of $765.2 million also topped Zacks’ consensus estimate of $725.1 million. Revenue increased 23.4% year-on-year, primarily driven by higher revenues in the Truckload Transportation Services and Logistics segments.

GATX Company GATX, sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2021 earnings (excluding 11 cents of one-time items) of $1.58 per share, which beat the Zacks consensus estimate of $1.07. Net income jumped more than 200% year over year. You can see the full list of today’s Zacks #1 Rank stocks here.

GATX’s total revenue of $321 million increased 5.3% year-over-year, primarily driven by a 5.2% rise in rental revenue to $288.4 million dollars and contributed 89.8% of revenue.

CH Robinson Worldwide CHRW, carrying a No. 3 Zacks rank, reported earnings per share of $1.74 in the fourth quarter of 2021, which is below the Zacks consensus estimate of $1.85. However, net income jumped 61.1% year-over-year.

CH Robinson’s total revenue of $6,501.8 million topped Zacks’ consensus estimate of $6,190.8 million. Revenue jumped 42.9% year-over-year due to higher prices and volumes across most of the company’s service lines.

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