NYSE$R

Ryder System Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Ryder's Q3 2020 earnings were reported.

Ryder reported Q3 total revenue of $2.2 billion, a decrease of 3%. GAAP EPS from continuing operations was $0.85, compared to a loss of $(1.75) in the prior year. Comparable EPS (non-GAAP) from continuing operations was $1.21, versus a loss of $(1.49) in the prior year.

  • Used vehicle sales results benefited from record sales volume and higher sequential truck and tractor pricing.
  • Commercial rental demand and utilization improved throughout the quarter, with September utilization above same month in prior year.
  • Supply chain automotive revenue returned to pre-pandemic levels.
  • Fleet management results benefited from a declining impact from prior residual value estimate changes as well as improved lease performance.

Headline financials

Total Revenue

$2.15B

Previous: $2.22B-3.3%
EPS (adj)

$1.21

Previous: $1.52-20.4%
Rental Utilization - Power

70.8%

Previous: 74.0%-4.3%
SelectCare Avg Fleet

56.5K

Previous: 56.4K+0.2%
Free Cash Flow

$35.8M

Previous: -$91.5M+139.2%
Net Income

$35.8M

Previous: -$91.5M+139.2%
Operating Income

$1.9B

Previous: $2B-5.0%
Gross Profit

$2.15B

Previous: $2.22B-3.3%
Cash & Equivalents

$684M

Previous: $75.9M+801.9%
Total Assets

$13.6B

Previous: $14.5B-5.8%

Revenue & EPS history

Ryder · Revenue · Quarterly

$2.15B

Q3 2020-3.3%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Ryder · $2.28B total across 6 segments · Q3 2020

  • ChoiceLease
    $788M
  • Supply Chain Solutions
    $685M
  • Dedicated Transportation
    $300M
  • Commercial Rental
    $220M
  • SelectCare & Other
    $145M
  • Fuel Services
    $144M

Forward guidance

Looking ahead to the fourth quarter, we anticipate returns in supply chain and dedicated to moderate, reflecting seasonality and lower COVID-related activity, and to be within their target ranges for the full year.

Tailwinds

  • In rental, we expect return improvements to accelerate in the fourth quarter due to higher demand and improved utilization.
  • In lease, we expect the fleet to continue to decline; however, pricing is expected to be higher reflecting our pricing initiative.
  • We anticipate record free cash flow of $1.4 to $1.5 billion in 2020, significantly above the prior year negative free cash flow of $(1.1) billion.
  • Additionally, in the fourth quarter we expect to resume our anti-dilutive share repurchase program which was temporarily paused due to COVID-19.
  • In the fourth quarter, we will be awarding our front-line employees a special recognition and retention bonus for their extraordinary efforts as essential workers during this pandemic, resulting in a one-time expense of approximately $30 million.

Headwinds

  • returns in supply chain and dedicated to moderate, reflecting seasonality and lower COVID-related activity
  • fleet to continue to decline
  • One-time expense of approximately $30 million due to awarding front-line employees a special recognition and retention bonus
  • Depreciation due to prior residual value estimate changes
  • Lower COVID-related activity

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 Q3 2020

Historical avgQ3 2020

-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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