NYSE$R

Ryder System Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Ryder's Q2 2022 results reflected record performance driven by earnings growth in all three business segments, with better-than-expected results in rental and SCS.

Ryder System, Inc. reported record performance in the second quarter of 2022, driven by strong earnings growth in all three business segments. The company's earnings were higher than its most recent forecast due to better-than-expected results in rental and Supply Chain Solutions (SCS). Ryder generated a record ROE of 28%, reflecting ongoing truck capacity constraints in the market and benefits from initiatives to increase returns and drive higher core earnings.

  • GAAP EPS from continuing operations was $4.72, compared to $2.78 in the prior year, driven primarily by significantly higher results in Fleet Management Solutions.
  • Comparable EPS (non-GAAP) from continuing operations was $4.43, compared to $2.40 in the prior year.
  • Total revenue reached $3.0 billion, and operating revenue (non-GAAP) was $2.3 billion, up 27% and 20%, respectively, reflecting organic revenue growth in all business segments and Supply Chain Solutions acquisitions.
  • The company increased its GAAP EPS forecast to $14.45 - $14.95 from $13.23 - $14.23 and its comparable EPS (non-GAAP) forecast to $14.30 - $14.80 from $13.40 - $14.40 for the full year 2022.

Headline financials

Total Revenue

$3.03B

Previous: $2.38B+27.3%
EPS (adj)

$4.43

Previous: $2.40+84.6%
Rental Utilization - Power

84.5%

Previous: 79.6%+6.2%
Free Cash Flow

$239M

Previous: $149M+60.6%
Net Income

$239M

Previous: $149M+60.6%
Operating Income

$2.65B

Previous: $2.11B+25.6%
Gross Profit

$3.03B

Previous: $2.38B+27.3%
Cash & Equivalents

$448M

Previous: $268M+67.1%
Total Assets

$14.5B

Previous: $12.9B+12.2%

Revenue & EPS history

Ryder · Revenue · Quarterly

$3.03B

Q2 2022+27.3%vs Q2 2021
Beat estimate in 11 of 16 quarters(69%)
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 increased its full-year 2022 financial outlook, expecting revenue growth of approximately 22% and operating revenue growth of around 16%. The company projects FY22 GAAP EPS to be between $14.45 and $14.95, and comparable EPS (non-GAAP) to be between $14.30 and $14.80. They also anticipate net cash from operating activities to be around $2.3 billion and free cash flow between $750 million and $850 million.

Tailwinds

  • FY22 GAAP EPS forecast increased to $14.45 - $14.95
  • FY22 Comparable EPS (non-GAAP) forecast increased to $14.30 - $14.80
  • Net Cash from Operating Activities from Continuing Operations forecasted at ~$2.3B
  • Free Cash Flow (non-GAAP) forecasted at $750M - 850M
  • Strong balance sheet enables targeted acquisitions and investments

Headwinds

  • OEM delivery delays expected to defer approximately $200 million of planned lease capital to 2023
  • Expects used vehicle sales and rental market environment will moderate in the second half of the year
  • Unallocated Central Support Services costs increased primarily reflecting increased professional fees and incentive-based compensation costs.
  • Effective income tax rate from continuing operations increased due to incremental U.S. tax on higher foreign earnings related to the exit of our UK FMS business.
  • Free cash flow decreased primarily due to an increase in capital expenditures, partially offset by higher proceeds from the sale of revenue-earning equipment, including the sale of UK vehicles related to our exit plan.

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 Q2 2022

Historical avgQ2 2022

-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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