NYSE$R

Ryder System Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Ryder reported strong results in a weak freight environment and raised full-year guidance.

Ryder reported a GAAP EPS from continuing operations of $(0.39) and a comparable EPS (non-GAAP) of $3.61. Total revenue was $2.9 billion. The company increased its full-year comparable EPS (non-GAAP) forecast to $12.20 - $12.70.

  • GAAP EPS from continuing operations was $(0.39), impacted by a non-cash UK exit charge.
  • Comparable EPS (non-GAAP) from continuing operations was $3.61, reflecting weaker market conditions in used vehicle sales and rental.
  • Strong performance in all segments benefited EBT.
  • Total revenue was $2.9 billion, compared to $3.0 billion in the prior year.

Headline financials

Total Revenue

$2.88B

Previous: $3.03B-4.9%
EPS (adj)

$3.61

Previous: $4.43-18.5%
Rental Utilization - Power

75.0%

Previous: 84.5%-11.2%
Free Cash Flow

-$18M

Previous: $239M-107.5%
Net Income

-$18M

Previous: $239M-107.5%
Operating Income

$2.55B

Previous: $2.65B-3.9%
Gross Profit

$2.88B

Previous: $3.03B-4.9%
Cash & Equivalents

$218M

Previous: $448M-51.3%
Total Assets

$15B

Previous: $14.5B+3.4%

Revenue & EPS history

Ryder · Revenue · Quarterly

$2.88B

Q2 2023-4.9%vs Q2 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 increased earnings and ROE guidance, but accelerated timing of OEM deliveries is expected to increase ChoiceLease fleet growth and related capital expenditures, which should reduce free cash flow in 2023.

Tailwinds

  • Full Year 2023 Comparable EPS (non-GAAP) $12.20 - $12.70
  • Full Year 2023 ROE 17% - 19%
  • Net Cash from Operating Activities from Continuing Operations ~$2.5B
  • Operating Revenue Growth (non-GAAP) ~2%
  • Debt-to-Equity ~200%

Headwinds

  • Total Revenue Growth ~(2%)
  • Free Cash Flow (non-GAAP) ~100M
  • Capital Expenditures ~$3.2B
  • FY23 GAAP EPS (includes ~$3.96 cumulative currency translation charge for UK exit) $7.95 - $8.45
  • 3Q23 GAAP EPS $2.82 - $3.07

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 2023

Historical avgQ2 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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