NYSE$R

Ryder System Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Ryder reported strong first-quarter results driven by their balanced growth strategy, despite a weaker freight environment. The company demonstrated resilience through pricing actions and revenue growth in dedicated and supply chain solutions, while also managing the normalization of used vehicle sales and rental market conditions.

Ryder System, Inc. reported a strong first quarter in a challenging freight environment, with total revenue of $3.0 billion, up 3%, and operating revenue of $2.3 billion, up 6%. GAAP EPS was $2.95, while comparable EPS (non-GAAP) was $2.81. The company is raising the low end of its full-year comparable EPS forecast due to modestly higher-than-expected used vehicle sales trends.

  • Total revenue increased by 3% to $3.0 billion and operating revenue increased by 6% to $2.3 billion.
  • GAAP EPS from continuing operations was $2.95, compared to $3.35 in the prior year.
  • Comparable EPS (non-GAAP) from continuing operations was $2.81, down from $3.59 in the prior year.
  • The company increased the low end of its full-year comparable EPS (non-GAAP) forecast to $11.30 - $12.05.

Headline financials

Total Revenue

$2.95B

Previous: $2.85B+3.4%
EPS (adj)

$2.81

Previous: $3.59-21.7%
Rental Utilization - Power

75.0%

Previous: 81.6%-8.1%
Free Cash Flow

$139M

Previous: $176M-20.8%
Net Income

$139M

Previous: $176M-20.8%
Operating Income

$2.6B

Previous: $2.55B+2.0%
Gross Profit

$2.95B

Previous: $2.85B+3.4%
Cash & Equivalents

$253M

Previous: $222M+14.0%
Total Assets

$14.5B

Previous: $14.2B+2.2%

Revenue & EPS history

Ryder · Revenue · Quarterly

$2.95B

Q1 2023+3.4%vs Q1 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Ryder · $3.07B total across 6 segments · Q1 2023

  • Supply Chain Solutions
    $1.2B+10.3%
  • ChoiceLease
    $776M
  • Dedicated Transportation
    $454M+6.8%
  • Commercial Rental
    $304M
  • SelectCare & Other
    $182M
  • Fuel Services
    $152M

Forward guidance

Ryder expects strong but reduced earnings in 2023 due to weak freight conditions impacting used vehicle sales and rental. Contractual lease, dedicated, and supply chain businesses are expected to improve based on growth and return initiatives. The business is expected to achieve ROE in line with its high-teens target.

Tailwinds

  • Operating revenue growth (non-GAAP) of approximately 4%.
  • Net cash from operating activities from continuing operations of approximately $2.4B.
  • Free cash flow (non-GAAP) of approximately $200M.
  • Adjusted ROE forecast remains at 16% - 18%.
  • Increased low end of comparable EPS (non-GAAP) forecast to $11.30 - $12.05 from prior forecast of $11.05 - $12.05

Headwinds

  • Full-Year 2023Total Revenue Growth~1%
  • FY23 GAAP EPS (includes ~$3.75 cumulative currency translation charge for UK exit)$7.21 - $7.96
  • Capital Expenditures~$3.0B
  • Debt-to-Equity~200%
  • Second Quarter 20232Q23 GAAP EPS (includes ~$3.75 cumulative currency translation charge for UK exit)$(1.12) - $(0.87)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.5%

Avg return

Earnings day

-1.6%

Avg return

5 days after

+0.5%

Avg return

30 days after

52%

36 / 69 earnings

Positive

+15.3%

Q1 2020

Best reaction

-20.1%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%+8.8%+7.1%
Q4 2025+2.4%+0.7%-11.4%
Q3 2025-12.2%-7.6%-8.0%
Q2 2025-0.8%-1.2%+2.1%
Q1 2025-1.9%+0.1%+8.2%
Q4 2024+3.0%+5.2%-11.1%
Q3 2024-3.6%+0.1%+14.2%
Q2 2024+1.8%+7.3%+9.5%
Q1 2024+12.1%+11.9%+10.5%
Q4 2023-7.6%-9.5%-5.2%
Q3 2023-4.9%-3.0%+9.8%
Q2 2023+8.4%+11.3%+5.6%
Q1 2023-6.4%-3.8%-4.1%
Q4 2022+1.9%+1.8%-14.2%
Q3 2022+9.9%+7.9%+28.7%
Q2 2022+4.4%+4.3%+8.4%
Q1 2022+4.4%+4.5%+17.9%
Q4 2021+2.7%+2.8%+10.1%
Q3 2021-4.8%-5.0%-6.2%
Q2 2021+4.5%+2.5%+9.9%
Q1 2021+6.7%+4.5%+6.5%
Q4 2020-6.2%-7.5%+11.9%
Q3 2020+1.4%-1.2%+21.0%
Q2 2020-10.8%-14.4%-1.3%
Q1 2020+15.3%+6.8%+11.6%
Q4 2019-20.1%-23.4%-38.5%
Q3 2019-12.1%-8.9%-3.3%
Q2 2019-10.2%-15.9%-19.3%
Q1 2019-7.5%-2.8%-20.2%
Q4 2018+6.5%+5.8%+0.7%
Q3 2018-10.3%-9.3%-12.1%
Q2 2018+7.3%+5.0%+6.3%
Q1 2018-9.1%-9.3%-6.9%
Q4 2017-11.4%-11.8%-11.3%
Q3 2017-1.7%+1.6%-6.5%
Q2 2017-0.5%-1.1%+1.0%
Q1 2017-14.1%-14.3%-15.7%
Q4 2016-4.9%-4.5%-1.3%
Q3 2016+5.6%+5.2%+22.9%
Q2 2016-5.9%-6.6%-8.0%
Q1 2016+9.5%
Q4 2015-5.0%
Q3 2015-2.3%
Q2 2015-5.8%
Q1 2015+2.9%
Q4 2014+5.3%
Q3 2014-3.2%
Q2 2014+1.3%
Q1 2014+2.1%
Q4 2013+0.1%
Q3 2013+3.7%
Q2 2013-2.2%
Q1 2013-0.6%
Q4 2012+6.7%
Q3 2012+2.7%
Q2 2012+8.2%
Q1 2012+1.2%
Q4 2008+0.4%
Q4 2011+0.4%
Q3 2011+9.5%
Q4 2010-0.9%
Q2 2011-0.9%
Q1 2010+6.2%
Q1 2011+1.0%
Q3 2009-2.7%
Q3 2010-2.7%
Q4 2009+0.6%
Q2 2009+0.6%
Q2 2010+0.6%

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